12 oil and gas blocks attract bidders

Only 12 of the 20 oil and gas blocks offered by the government through a regular bidding mechanism attracted bidders, according to an official at the Ministry of Energy and Mineral Resources.

Director general of oil and gas Luluk Sumiarso said on Friday the other eight blocks failed to attract bidders because their ?geological concept and economy? did not meet investors? requirements.

The 12 blocks that attracted bidders are believed to hold resources of between 30 and 400 million barrels of oil equivalent, while the inattractive eight blocks were thought to have a small amount of resources, Luluk said.

The 12 blocks are South East Mahakam in Kalimantan, West Air Komering in Sumatra, Karama in Makassar Strait, Mandar in Makassar Strait, Sageri in Makassar Strait, Ujung Kulon in West Java, Cucut in Natuna, Tuna in Natuna, Cakalang in Natuna, Baronang in Natuna, Enrekang in West Sulawesi and Lampung 1 in Lampung.

Companies that participated in bidding for the 12 blocks include long-time players in Indonesia such Total SA, Manley NV, Premier Oil, Petronas, Esso Exploration, Talisman, Pertamina, Anadarko, Statoil ASA,; and new players such as Singapore Petroleum Co. Ltd of Singapore, Ongv Videsh of India, Mitsui Oil Exploration of Japan, M3nergy of Malaysia, Opic Petroleum of Taiwan and Salamander of England.

The government expected to get $25 million in signature bonus from investors that will win the 12 blocks, Luluk said. (Godang)