The government remains committed to creating an attractive upstream oil and gas investment climate through various new fiscal policies..
Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources will launch auctions for 10 new oil and gas blocks at the upcoming Indonesian Petroleum Association Convention and Exhibition (IPA Convex), which will take place on May 22–23, 2026.

"Around 10 (oil and gas blocks), some are in Sulawesi, Kalimantan, Papua and Sumatra," the ministry’s director general of oil and gas Laode Sulaeman told reporters in Jakarta on Wednesday.

Earlier in February, the ministry announced 10 potential new oil and gas block areas that had completed in-depth studies conducted by the Geological Agency and the Oil and Gas Testing Center (Lemigas).

The new blocks are located in Rupat, Puri, Karapan Baru, Pesut Mahakam, Bengara II, Maratua II, South Matindok, Lao-Lao, Rombebai and Northern Papua/Jayapura.

The government remains committed to creating an attractive upstream oil and gas investment climate through various new fiscal policies, Sulaeman added.

Some of the incentives offered include increasingly attractive fiscal provisions with a 50 percent split for contractors, from previous split of 15–30 percent.

Furthermore, the government is providing flexibility in oil and gas contracts, allowing contractors to choose between cost recovery and gross split contracts, upstream oil and gas incentives to optimize production and indirect tax exemptions during the exploration period.

Meanwhile, regarding the management of the Tuna Block, Energy and Mineral Resources Minister Bahlil Lahadalia stated that the engineering, procurement and construction (EPC) process will begin soon.

This significant offshore oil and gas project, located in the North Natuna Sea, is set to begin production in 2028, following the exit of independent UK oil company Harbour Energy in late 2025 due to sanctions.

"Harbour has already sold part of its shares to a national company. I think the EPC will be underway soon. We are targeting accelerated production in 2028, or 2029 at the latest," Bahlil said.



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