Azipac named as winning bidder of Oti block

Bermuda-registered oil and gas firm Azipac Ltd has been named as the winning bidder for the Oti oil and gas block, offshore East Kalimantan, according to a senior official at the Ministry of Energy and Mineral Resources.

Director of Upstream Oil and Gas Development at the ministry, Tunggal said on Wednesday that the Oti block was among of the 14 oil and gas working areas offered by the government to investors last year.

But he said that only one offer, made by Azipac for the Oti block, which met the government?s criteria. He said that the ministry has yet to decide whether to re-tender the other 13 oil and gas working areas.

Tunggal said that the government will apply the recently-introduced gross split scheme in the Oti block production sharing contract, and claimed that Azipac has agreed to implement the new scheme.

In Indonesia, Azipac already owns two oil and gas assets including a 40 percent interest in Bone Block, South Sulawesi, in partnership with Jadestone Energy; and 100 percent interest in North Madura block in the Java Sea. (*)