Government offers 10 potential oil and gas block areas

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) has offered 10 new potential oil and gas block areas that have undergone in-depth studies. ‘There are ten (10) potential oil and gas block areas that have completed studies by the Geological Agency and LEMIGAS and are opened to prospective investors,’ said Laode Sulaeman, Director General of Oil and Gas at the ESDM Ministry, as quoted on the ministry’s official website. He noted the ten areas form part of 110 potential areas mapped by the Ministry of Energy and Mineral Resources up to February 2026. He explained that because these ten areas have undergone study by the Geological Agency and LEMIGAS, the data quality for all ten oil and gas areas is better. The ten areas are Rupat, Puri, Karapan Baru, Pesut Mahakam, Bengara II, Maratua II, South Matindok, Lao-Lao, Rombebai, and Northern Papua/Jayapura. The government continues to commit to creating an attractive upstream investment climate in oil and gas through various new fiscal policies. Some of the facilities offered include more attractive fiscal terms with PSC splits of up to 50 per cent (previously 15–30 per cent). In addition, the government offers flexibility in oil and gas contracts, where the PSCs are allowed to choose the type of contract, either cost recovery or gross split, upstream incentives for production optimisation, and exemption from indirect taxes during the exploration period.