Indonesia to tender three shale gas blocks in 2016

Map of indonesia
Source: DollarPhotoClub

The government of Indonesia has announced that it will offer up for open tender 21 oil and gas blocks in 2016 – three of them for shale gas exploration. The shale blocks on offer are: the Jambi, Central and East Sumatra and Central and Southeast Sumatera blocks, Jakarta Post reported.

“The number of (oil and gas) working areas on offer has been declining from year to year. We expect that the number (of areas) will increase next year as a result of breakthroughs by the exploration team,” IGN Wiratmaja Puja, director general for oil and gas at the Ministry of Energy and Mineral Resources (MEMR) said Tuesday during a hearing at Indonesia’s House of Representatives, as quoted in The Jakarta Post report.

Indonesia – which exited OPEC in 2009 due to its declining oil production and rising domestic demand – is hoping to kick-start shale exploration to boost natural gas production in order to meet its energy export obligations and earn revenues through international market sales.

According to Energy and Mineral Resources Ministry, the country has hypothetical shale gas resources of 574 trillion cubic feet (tcf) distributed as follows: Sumatra Island, 233 tcf, Kalimantan Island, 194 tcf, New Guinea, 90 tcf, Java Island, 48 tcf, and 9 tcf in various other locations.

The 2016 tender will follow the signing of twelve oil and gas cooperation contracts in May this year; four of them for unconventional oil and gas.

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