10 New oil and gas working areas contracts signed

The upstream oil and gas regulator BPMIGAS and oil and gas contractors (PSCs) on Monday signed 10 working areas (WKs). The contracts were result of first and second phase regular auctions.

The contracts signing was witnessed by Energy and Mineral Resources Minister Jero Wacik.

Of the ten WKs, four were a result of auction phase I. These are Offshore Timor Sea I won by Hess (Indonesia-V) Ltd; West Aru owned by BP West Aru I Ltd; West Aru II won by BP West Aru II Ltd; Halmahera II which is won by consortium of Statoil Indonesia Halmahera II and Niko Resources (Halmahera II) Ltd.

The other six WKs were results of second phase auction. These were Kalyani WK operated by Eurorich Group Ltd; South Baturaja operated by PT Anugerah Mutiara Sentosa; North Baturaja operated by PT Terra Global Vestal Baturaja; Kuala Pambuang won by PT Mentari Pambuang Internasional; Tanjung Baru won by consortium of Krisenergy (Tanjung Aru) B.V, Neon Energy Indonesia Pty Ltd and Natuna Ventures Pte Ltd; and Southeast Seram won by Niko Resources (Southeast Seram) Ltd.

The energy minister said the companies winning the contracts would set aside US$8.15 million for firm investment for geology and geophysics (G&G) study, 2D seismic survey, 3D seismic survey and drilling of exploration wells.

Total investment commitment for exploration reached US$102.65 million. Meanwhile, the government received signature bonus of US$25.85 million for signing the contracts. (roffie/romel)