Indonesia is offering 15 conventional and unconventional oil and gas blocks (10 conventional and 5 unconventional). Three conventional blocks are offered through regular bids, namely Tongkol (East Natuna Basin), East Tanimbar (Maluku) and Memberamo (Papua), while seven will be awarded through direct offers: Andaman I, Andaman II, South Tuna (Riau island), Merak (Banten&Lampung), Pekawai (East Kalimantan), West Yamdena (Maluku), and Kasuri III (West Papua). Among the non conventional oil and gas blocks, two are shale gas (Jambi I and Jambi II) and three are coal bed methane: Raja (South Sumatra), Bungamas (South Sumatra) and West Air Komering (South Sumatra).
In 2016, Indonesia offered 17 oil and gas blocks, received many bids but only selected one winner after evaluations. Low oil prices in 2016 also contributed to limit investors' interest. Consequently, the blocks offered in 2017 have new production sharing rules, in an attempt to lure investors in its oil and gas sector. The government will also revise rules on recoverable costs and reduce import duties on exploration equipment.
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