Indonesia drafts investment rules to spur exploration in 67 basins
The proposed framework would let the government tailor production-sharing terms and investor obligations to the geology and risks of each area.
Indonesia plans to make investment terms more attractive for companies exploring its 67 untapped frontier basins, with regulations being drafted by the Ministry of Energy and Mineral Resources.
The proposal would give the government flexibility over signature bonuses, production-sharing arrangements and mandatory firm commitments. These would be adapted to each working area's geological characteristics and risks, said Ivan, who coordinates conventional oil and gas working-area development at the ministry.
Speaking in Bali on October 26 at the 51st ASEAN Council on Petroleum and Energy meeting, Ivan said the regulations were not yet complete.
SKK Migas, the upstream oil and gas task force, lists 128 sedimentary basins in Indonesia. Of these, 20 are producing and 41 have discoveries confirmed but are still undergoing exploration. Another 67 have not been explored.
The government is also promoting exploratory drilling, geological studies and seismic data collection to find resources and strengthen energy reserves. Ministry figures put the exploration-to-production success rate at approximately 14.5 per cent.
The ministry said wider exploration and higher-quality subsurface information were important for helping investors locate promising resources and reduce risks.
