Indonesia to offer 10 oil and gas blocks in 2024 to boost reserves

Estimated read time 2 min read

A | a-+=

Indonesia is gearing up to bolster its oil and gas reserves with plans to auction off 10 new blocks this year, following a similar move in 2023. The announcement was made by Tutuka Ariadji, a senior official at the country’s energy ministry, who highlighted the ongoing bidding process for two working areas, Akimeugah-1 and Akimeugah-II, in the Papua region.

“We are still working with the experts, but based on the information I have, it is quite promising,” Tutuka remarked during a press briefing. The upcoming auction is expected to include prospective areas in the northern part of East Java province and near the Andaman block in offshore Aceh province.

The first round of bidding is slated to commence in May, according to Ma’ruf Affandi, another energy ministry official. However, last year’s auction did not attract any bids for the Natuna D-Alpha block in East Natuna. Maruf mentioned that the block might be up for joint study or tender again this year.

Despite the lack of bids, the Natuna D-Alpha exploration block remains a significant prospect, boasting an estimated 230 trillion cubic feet (6.5 trillion cubic meters) of gas resources. This makes it one of the largest resources globally, albeit with a high carbon dioxide (CO2) content, posing technical challenges that require innovative solutions.

Indonesia’s move to expand its oil and gas exploration comes at a time when the country is aiming to revitalize its energy sector, which has faced sluggish output in recent years. By offering new blocks for exploration and production, Indonesia is seeking to attract investment and expertise to tap into its vast energy potential and secure its position as a key player in the global energy market.

(Source: Bernadette Christina | Sonali Paul | Reuters)

You May Also Like