Government Offers 10 New Oil and Gas Blocks: See the List and Incentives
The Ministry of Energy and Mineral Resources (ESDM) has officially offered ten new potential oil and gas blocks that have undergone in-depth studies. The move aims to attract investors and speed up the discovery of new hydrocarbon reserves in Indonesia by 2026.
Director General of Oil and Gas (Migas) Laode Sulaeman said the ten areas are the result of intensive studies by the Geological Agency and LEMIGAS. With this initial study, investment risk for prospective contractors is expected to be significantly reduced. Laode explained that the ten areas are part of 110 potential blocks mapped by the Ministry of Energy and Mineral Resources up to February 2026. The focus on these ten areas was chosen because data available is far more comprehensive than in other regions.
‘The studies form part of the government’s active role through the Geological Agency and LEMIGAS to improve oil and gas data quality so that prospective investors are more attracted, particularly to exploration,’ Laode said in a statement in Jakarta.
The ten areas’ names are not listed in the provided copy, but the block designations were referred to in the announcement.
To create a more attractive investment climate, the government is offering a range of fiscal policy breakthroughs. One of the most notable changes is the adjustment of the production sharing ratio (split) for Contractors Working Agreement (KKKS). Previously, KKKS shares ranged from 15% to 30%; under the latest policy, the government is prepared to offer a split up to 50%. In addition, the government provides flexibility for investors to choose between cost recovery or gross split.
Oil and Gas Investment Facilitation 2026: The government invites oil and gas companies with technical and financial capacity to express interest via two methods: Direct Offers through Joint Studies or Regular Auctions. As scheduled, proposals for the ten blocks can be submitted to the Directorate General of Migas from 1 April 2026 to 10 April 2026, complete and correct.
‘In line with the directions of the Minister of ESDM, we are providing facilitation and opening opportunities to oil and gas companies with the capacity to carry out exploration and exploitation activities in Indonesia,’ Laode concluded.