Indonesia signed three oil and gas exploration and production contracts under the PSC scheme on September 21, 2023.
The three contracts are for the Akia work area, Beluga work area, and Bengara I work area. They were put up for tender by the Ministry of Energy and Mineral Resources during the first round of tender conducted in April 2023.
Here are the details of the three contracts.
AKIA WORK AREA
Location: Offshore North Kalimantan
Contractors: a consortium consisting of Armada Etan B.V. as the operator and Pexco Tarakan N.V.
Size of work area: 8394 Km2
Estimated reserves: 2 billion barrels of oil and 9 TCF of gas.
Signing bonus: 500,000 USD
Contractor’s commitments: Contractor to do 3 G&G studies, conduct 750 Km2 of seismic survey, and invest 7.7 million USD over the first three years upon signing.
BELUGA WORK AREA
Location: Offshore West Natuna
Contractor: Medco Energy Beluga
Estimated reserves: 360 million barrels of oil and 50 BCF of gas.
Signing bonus: 100,000 USD
Contractor’s commitments: Contractor to conduct 2 G&G studies, drill one exploration well, and invest 8 million USD in the first 3 years upon signing.
BENGARA I WORK AREA
Location: North Kalimantan
Contractor: TexCal Energy
Estimated reserves: 90 million barrels of oil equivalent (MMBOE)
Contractor’s commitments: Contractor to do 2 G&G studies, drill one exploration well, and invest 6.5 million USD in the first 3 years upon signing.
Signing bonus: 50,000 USD
In other news, the Ministry of Energy and Mineral Resources has put up three oil and gas work areas in Papua in its third round of tender in 2023. Indonesia is very keen to step up oil and gas exploration and production to boost its hydrocarbon production.