AziPac Limited Wins Oti Block Auction

The government established AziPac Limited as the winning bidder for Oti oil and gas blocks off the coast of East Kalimantan. Azipac is the only winner of an oil and gas block auction held last year. 

   Director of Upstream Business Development of the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tunggal revealed that the auction of last year's oil and gas block is no demand at all.

Bidders are mostly local oil and gas companies working with international companies, considering there is an obligation for international companies to partner with Indonesian companies.

However, from a few bidders, only AziPac meets the criteria requested by the government. "This is an estimate owner, AziPac meets the criteria, all above owner estimate and none higher than Azipac," he said in Jakarta on Wednesday (31/5).

Last year, the government changed the oil and gas block auction scheme, using the open-bid split model. With this scheme, investors can bid on the amount of split and signature bonuses. The next auction winner is determined based on the best offer based on the proposed definite commitments of exploration, profit sharing, and signature bonuses that are adjusted to the economic criteria in the terms and conditions set by the government.

The government auctioned 14 oil and gas blocks using this scheme, through direct and regular bids. Oti Block is one of seven oil and gas blocks offered through regular auctions. In the auction, Oti Block is offered with a 65:35 revenue share on the oil field and 60:40 for the gas field, in which the greater part of the government.

The requirements are the implementation of G and G Study activities, drilling of one exploration well, and a minimum signature bonus of US $ 1 million. Furthermore, the government will call AziPac to discuss the terms and conditions of its oil and gas contracts and offer a form of gross split contract.

At the auction, it still offers by using the contract of cooperation (KKS) scheme of cost recovery of investment (cost recovery). But with the regulation of the gross split contract, it wants to offer this scheme to AziPac hoping the contract will use gross split, AziPac will use gross split, "he said.

AziPac is a Singapore-based oil and gas company backed by Seacrest Capital Group, a world-class energy investor. Azipac has a number of exploration blocks off the coast of Southeast Asia and the Bay of Bengal Region. 

the North Madura Block by Azipack

    In Indonesia, AziPac holds a participating interest in the Bone Bay Block, Sulawesi by 40% and the North Madura Block, offshore East Java totaling 100%. Senior Management AziPac has experience in building, developing and optimizing regional exploration assets.

Investor Daily, Page-9, Friday, June 2, 2017