About Company
About Us
Providing Strategic Vision and operational Precision
We help clients to increase the chance to successfully acquire Oil & Gas Blocks particularly in Indonesia as well as help clients to explore, develop and produce the oil & gas blocks for maximum profit under optimum cost with professional and timely manner.
Oil & Gas companies acquire oil and gas blocks in general thru three different mechanisms:
- Direct Offer Tender: open acreages, relinquished area, and DRO (Discovered Resource Opportunity) area identified by GOI.
- Regular Tender: open acreages, exploration acreages announced by GOI, relinquished area and DRO area identified by GOI.
- Merger & Acquisition for existing production and/or exploration blocks.
OUR UNIQUE VALUE PROPOSITION
Oil & Gas companies acquire oil and gas blocks in general thru three different mechanisms:
- Direct Offer Tender: open acreages, relinquished area, and DRO (Discovered Resource Opportunity) area identified by GOI.
- Regular Tender: open acreages, exploration acreages announced by GOI, relinquished area and DRO area identified by GOI.
- Merger & Acquisition for existing production and/or exploration blocks.
Companies made an acquisition on particular Oil & Gas Blocks that suit with their criteria which may include company experience, target block status (Exploration, Discovery, Pre-Development and Production phase), interest on specific area of operation such as onshore & offshore, specific geological condition, oil & gas reserves and resources size, type of Contracts and Fiscal Terms, financial capabilities, and other criteria. Companies buy and sell Assets at all stages of the E&P life cycle. Acquiring Resources in Oil & Gas requires a thorough and detailed process and should consider several aspects such as Risk, Rewards, Cost of Acquisition, Capital Intensiveness and Asset impairment.
Sando can provide solution on dataroom evaluation on the assets:
- Effective workflow during Dataroom.
- Ensure data interpretation in particular asset strengthened by regional data and based on Sando’s staff individual experiences.
- Ensure asset evaluation, asset valuation and its contract comply to updated government regulations.
- Proper due diligence on companies of the seller and buyer to ensure good partnerships.
SANDO’s long experience is also strengthened by competence in:
- Deep understanding of Geological and Geophysical knowledges in Indonesia.
- Good knowledge regarding of Fiscal Terms.
- Knowledge of infrastructures.
- Knowledge on oil and gas markets in certain area.
- Strong relationship with all stakeholders
OUR CONSULTANTS
SANDO Energy builds its reputation based on the qualifications of the consultants. SANDO serves clients with a complete set of multi-disciplinary professionals who work in a comprehensive and integrated manner.
Petroleum & Reservoir Engineering Consultant
SANDO’s strong competitive advantages with multi-disciplinary approach is strengthened by highly qualified Engineering consultants with international reputation whose name is Wahyu Djatmiko, PhD. Mr Wahyu Djatmiko is a Reservoir Engineering by background. He took his Bachelor degree at Petroleum Engineering, Institute of Technology Bandung, Master and Doctoral degrees at Imperial College, London. He is a Subject Matter Expert on Classical and Operational Reservoir Engineering, Reservoir Simulation, Field Development Plan, Reserves Assessment & Certification and EOR. He has been working for 30 years in various Oil & Gas E&P and Consulting Companies in Indonesia and overseas starting from Lemigas and continue work for Petrochina, HESS, PTTEP and Pertamina. He also creates some softwares related with Oil & Gas Operation. He has published significant number of scientific publications related with Reservoir Engineering both in national and international journals. SANDO also serves clients in the area of Petroleum Economic, Fiscal and Valuation. SANDO’s Economic & Valuation consultant has strong M&A know how with supreme academic background at Doctoral level. Experience and expertise include Asset Valuation, Due Diligence in the context of Farm in and Farm out, Fiscal Analysis as well as expertise in the Regulation and Compliance.
Policy, Government and Public Affair Consultant
Ratna Setya Novanti (Rina) is a Policy, Government and Public Affairs professional. She took Advertising and Secretarial Stduies in London, Magister Management degree in Communication from Trisakti University, Jakarta. She has long experience organizing National & International Events such as 2024 International Bali Airshow (ongoing), Oil and Gas, Renewable Energy Legal Practitioners Association Event in 2023, World Private Investment Forum in 2024 (ongoing). She held various position in area of Corporate Affairs and Government Relation. She was Senior Advisor in Government Relation at HCML with responsibility to promote company policies, build and maintain company reputation and long term image. She was General Manager on Corporate Affairs at Pacific Oil & Gas in 2012 and General Manager for Government Relations and Public Relation at STATOIL Indonesia in 2011-2012. She joined UNOCAL which then became CHEVRON in the area of Government & External Relation for more than 15 years. She was behind successful of POD approval of Peusangan Field (Zaratex) and Kisaran Block (PO&G). Her strong relationship with Government and Stakeholder will strengthen SANDO’s position as a reliable consulting company.
Block Acquisition through Contract with Government of Indonesia
Indonesia remains as an attractive country to invest in Upstream Oil & Gas Business. There are approximately 60 basins in Indonesia, however only 15 of them are successfully explored, discovered and developed. Investment climate in upstream sector in Indonesia is currently high especially when the government of Indonesia launch 2030 vision to produce 1 million barrels of oil and 12 BCFD gas. Such an aggressive vision will inevitably require massive investment to manage the decline of the current producing, developing new discovered fields (pre and post Plan of Development/POD approval) and increase production through massive exploration.
Managing decline on current fields require investment such as workovers, infill drillings and facilities optimization. Developing new discovered field require building new production facilities, drilling new development wells and efforts to monetize the hydrocarbon. However, managing decline and developing new fields will be insufficient without massive exploration therefore government put so much efforts to attract investment for a new contract signing with contractors with the main purpose to boost new exploration.
Government of Indonesia give opportunities for local and foreign company by awarding oil and gas Contract Area through bidding process. The bidding process is conducted in 2 periods in a year, usually in April and September where the bidding process is conducted through 2 schemes called Reguler tender and Direct Proposal Tender.
Please refer to www.esdm.go.id for more information.
M&A thru Farm in on Existing Block
Farm in Farm out on existing Block is quite prevalent in Indonesia and South East Asia. Indonesia is still an attractive country to invest in upstream business. Government of Indonesia offers flexibility in term of License Contract to attract investors. Generally, License contract in Indonesia is in the form of Production Sharing Contract (PSC) where there are two schemes namely PSC Gross Split and PSC Cost Recovery.
Companies buy and sell of existing Assets/Blocks at all stages of the E&P life cycle which could be at Exploration, Discovery, Pre-Development, Development and Production phase. Existing Blocks can also be on a specific area of operation such as onshore & offshore, a specific geological condition and depositional environment (fluvial, deltaic, lacustrine, marine, etc), a specific regional area like western part and eastern part of Indonesia, a specific oil & gas reserves and resources size, a specific technology to exploit due to reservoir quality (conventional vs non conventional), a specific type of Contracts and Fiscal (PSC Cost Recovery, Gross Split).
Specific in Indonesia, government currently launches 2 (two) different contract scheme where both are similarly production sharing contracts (PSC) The PSC gross split scheme is a scheme where the percentage of profit sharing between the government and the contractor is calculated in advance. The government does not interfere in the process of procuring goods and services for upstream oil and gas business activities. The PSC cost recovery scheme is a production sharing contract where operating and investment costs will be reimbursed by the government. Thus, operational and investment costs are paid in advance by the contractor to carry out oil and gas exploration, exploitation and production activities
Farm in activities consist of several process start with Dataroom where potential buyer access data for due diligence and then continued with non binding offer before move on to the 2nd phase. Due diligence is a comprehensive process to understand the embedded risks and the upside potential of the Blocks and the potential synergy operationally and strategically.
