7 bidders eyeing direct offer exploration blocks

Government said on Monday seven interested bidders have submitted bids on seven exploration blocks that are being offered through direct offer scheme.

Upstream Director at the Ministry of Energy and Mineral Resources Edi Hermantoro said at the ministry?s website that the seven blocks are Kubu Block (onshore Riau), NE Ogan Komering (Onshore Lampung and South Sumatra), Offshore West Java Block (Offshore West Java), Blora Block (Onshore East and West Java), North Makassar Strait Block (onshore/offshore East Kalimantan) and Digul Block (onshore Papua).

He did not give the bidders? names.

The government is offering seven exploration blocks through direct offer scheme this year along with 17 blocks offered through regular tender. Bid submission deadline was July 30, 2009.

Edy said winners for the blocks would be announced mid-August.

Under the direct offer mechanism, investors are allowed to choose blocks they want to explore by conducting the so called ?joint study?. Once they have made a choice, the government will advertise the chosen blocks to attract rival bids. If none is interested or rival bidders offer less attractive investment plan, the government will award the blocks to the investors that make the first bids.(alex)