23 companies submit bid for 13 exploration blocks

Twenty three companies had submitted bids for 11 of the 13 oil and gas blocks being offered by the government through direct offer system, a senor official at the Ministry of Energy and Mineral Resources said on Wednesday.

The ministry's exploration and exploitation director Novian Thaib said major companies such as ConocoPhillips, Anadarko Petroleum Corp, Santos Ltd of Australia and Thai?s PTT were among the 23 companies. Meanwhile, PT Bumi Parahyangan and PT Eriguna are among the local companies that submitted bids.

Novian also said Citarum (West Java), West Kampar (Riau) and Bungamas (South Sumatra) are the most-coveted blocks. However, there are no bids for the Amborit Sea and North East Madura V blocks.

Under the direct offer system, oil and gas blocks are offered to investors without a normal tender process. In case only one company is interested in the offered block, the government will give the block to the firm. However, the government will hold a normal tender process, if several companies are interested in certain blocks.

The government is expected to announce the results of the tender at the end of July or in early August.

The winners of the tender will develop the blocks under production sharing contracts. (godang)