BPMIGAS to farm out idled blocks

By Godang Sitompul

Upstream authority BPMIGAS will promote a farm-out to overseas investors of oil and gas blocks which have not fulfilled exploration commitment and are left idled.

?We plan to revive working areas which have long been ?sleeping.? We will improve the asset value, such as completing the data etc. Then we?ll farm them out to Singapore or other countries. These are all conventional blocks,? Chairman R. Priyono told petromindo.com.

While bringing in new investors would help revive the operation of those idled assets, it would also boost flows of foreign direct investment to the country, increasing the investment profile of the country in international community, he added.

?There are more than 10 working areas (WKs) that have not fulfilled their exploration commitment. Now we?re trying to help out,? he said.

WKs are tendered out and issued by the Ministry of Energy and Mineral Resources.

Editing by Dadan Wijaksana