Anticipating Pandemic, Govt to Prepare Better O&G Tender Rules

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 149.Pers/04/SJI/2020

Date: 8 April 2020

Anticipating Pandemic, Govt to Prepare Better O&G Tender Rules

The Covid-19 global pandemic has impacted all sectors, including the plan to offer Oil and Gas Work Areas. Several preparation stages before the announcement of Work Areas Tender will be rescheduled because almost all stakeholders apply Work From Home (WFH) and social distancing activities.

"Currently, preparation for the Tender of Conventional O&G Work Areas Phase I of 2020 continues to be done. The government is also finalizing the best policies to increase Business Entities/Permanent Establishments (BU/BUT) interest in the tender," explained Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR, Agung Pribadi, Wednesday (8/4).

Related to the O&G work areas tender, Agung says the government is preparing favorable terms & conditions, among others, related to firm commitment, amount of signature bonus, and contract scheme. The government is also reviewing the stimulus to promote and increase upstream oil and gas investment especially amid the Covid-19 pandemic.

"The tender itself will be rescheduled, considering the social distancing policy and because many stakeholders apply WFH," explained Agung.

Agung informs that until recently, Directorate General of Oil and Gas has recorded 10 potential candidates for the conventional O&G work areas to be offered at the Conventional O&G Work Areas Tender Phase I of 2020.

In addition to the current Covid-19 pandemic, Agung continues, the decline in the world's oil prices is also the government's consideration in deciding the appropriate time to announce the commencement of Conventional O&G Work Areas Tender Phase I of 2020.

"The oil and gas business is a high risk business, so technical and financial preparation is vital to minimize the risk of failure in the future. The government does not want exploration and exploitation activities to go unfinished that they instead disrupt the upstream oil and gas investment in Indonesia," Agung stated. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

Share This!