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Indonesia offers 15 oil blocks

Updated May 20, 2017

JAKARTA: Indonesia is offering 15 conventional and unconventional oil and gas blocks to potential bidders, government officials said on Friday, hoping more flexible terms will help reverse flagging interest in the sector after lacklustre performance in 2016.

This year the government is applying new production sharing rules and will revise rules on recoverable costs and cut import duties on exploration equipment where possible, said deputy energy minister Arcandra Tahar, among efforts to incentivise new investment.

“If you can show us in your analysis and data that the split is not good enough, let’s talk,” Tahar said, promising to listen more closely to investors.

“If the result is not enough, we have five per cent discretion from the minister. If that’s still not enough, now we have a problem.”

The latest offer includes 10 conventional blocks and 5 non-conventional oil and gas blocks under a gross split production sharing contract scheme.

Published in Dawn, May 20th, 2017