Jakarta – Indonesia's energy minister said on Thursday the government had made improvements in its oil and gas terms that would allow contractors to have equity shares of more than 50 percent in some new blocks to attract investment.
The archipelago nation is keen to boost output from its rich gas reserves while it still can, as global investors shift increasingly away from fossil fuels.
Energy Minister Arifin Tasrif said 68 of the country's 128 hydrocarbon basins remained entirely unexplored.
"The Indonesian government is strongly committed to accelerate the development of these untapped oil and gas reserves," he told participants at an energy conference.
Arifin said the new terms were being offered starting from the third bidding round this year that was announced on Wednesday.
"The government is offering new working areas with more attractive terms and conditions, including improvements in the equity split between the government and contractors, enabling contractors to secure a share exceeding 50 percent," he said.
The new terms will apply to both the cost recovery and the gross split contractual schemes, he added.
The government is also in the final stages of revising regulations to improve the economic viability of oil and gas projects in Indonesia, he added, without elaborating.
He also urged companies to invest in carbon capture and storage (CCS) and carbon capture, utilization and storage (CCUS) projects that are now required to continue investing in fossil fuel sector.
There are currently 15 CCS/CCUS projects in various preparation stages in Indonesia. Arifin said most were targeted to be onstream by 2030.