ESDM to Announce Winners of Auction for 10 New Oil and Gas Blocks

The Ministry of Energy and Mineral Resources will announce the winners of the auction for 10 new oil and gas working areas. The Director General of Oil and Gas at ESDM, Laode Sulaeman, stated that the announcement is scheduled to take place at the Indonesian Petroleum Association Convention and Exhibition on 20–22 May 2026. “Yes, that’s around 10 working areas,” said Laode when met at the Ministry of ESDM in Jakarta on Wednesday, 13 May 2026. However, Laode has not detailed the contractors who will win the auction process. Previously, Laode explained that the 10 working areas are part of the 110 potential oil and gas areas mapped by the Ministry of ESDM up to February 2026. All these areas have undergone studies by the Geological Agency and LEMIGAS, resulting in better data quality to attract investor interest. “There are 10 potential new oil and gas block areas that have completed studies by the Geological Agency and LEMIGAS and are open to prospective investors,” said Laode in a written statement on 4 March 2026. The studies, he continued, are part of the government’s active role in improving oil and gas data quality to make it more appealing to investors, particularly in exploration. The government, he said, continues to strive to create a more attractive upstream oil and gas investment climate through several new fiscal policies. Some incentives offered include an increase in the split for contractors up to 50 per cent from the previous 15-30 per cent, flexibility in choosing cost recovery or gross split contract schemes, production optimisation incentives, and exemptions from indirect taxes during the exploration period. In addition, the government is accelerating cross-ministerial permitting processes and conducting initial exploration using state budget financing, including seismic surveys, to reduce exploration risks for investors. “The government is opening opportunities for investors through two mechanisms, namely direct offers through joint studies and regular auctions,” he said.