Indonesia is offering five exploration oil and gas working areas and one exploitation working area in its first bidding round of 2022. The blocks offered are scattered across the country: offshore Northwest Aceh, offshore Southwest Aceh, and Arakundo in Aceh, Bawean in offshore East Java, Bengara 1 in North Kalimantan, and Maratua 2 in offshore Makassar Strait.
According to an Indonesian senior energy official, the potential resource of the oil and gas blocks total 3.94 billion barrels of oil and 14.08 trillion cubic feet of gas.
Tutuka Ariadji, the energy ministry’s director-general of oil and gas, said the government had improved the contractor’s split and offers flexibility in a production sharing scheme. It has also lowered a shareable First Tranche Petroleum (FTP) from 20% to 10% to attract more bidders.
FTP refers to the portion of oil or gas produced and set aside before any deduction is made for recovery of operating costs and production handling costs, which the government and the contractor are entitled to.