Correction: Govt awards 11 oil and gas contracts

Monday, November 21 2011 - 09:57 AM WIB

(The previous article incorrectly stated that the government signed 15 new contracts. The government in fact signed 11 new contracts only, and announced the winners of four other new contracts. The article has been rewritten as follows)

The Ministry of Energy and Mineral Resources awarded on Monday 11 new contracts to a number of oil and gas companies and consortiums, including international firms such as Niko Resources, Eni and Statoil to explore and develop oil and gas resources in various locations of the country.

The ministry said in a statement that the contracts were signed in a ceremony witnessed by Minister of Energy and Mineral Resources Jero Wacik.

Of the 11 contracts, two were offered in the Phase II of 2010 Regular Tender and nine in the Phase I of 2011 Direct Offer Tender. The government announced the winners of the tenders months ago, but only signed the contracts today.

The ministry also announced companies that had won four contracts offered in the Phase I of 2011 Regular Tender. The companies include BP Exploration Indonesia Limited, a subsidiary of British energy giant BP Plc, which won West Aru I and West II PSC concessions.

The companies that signed contracts on Monday include Eni, which through Eni Arguni Limited, was awarded the contract on Arguni I PSC; Niko Resources, which in a partnership with among others Statoil signed three contracts on North Ganal PSC, Obi PSC and Halmahera II PSC.

The ministry said in a statement that the oil and companies and consortiums were committed to spending a total of US$265.8 million for exploration over a period of three years and would immediately pay a total of $55.43 million in signature bonus to the government.

During the occasion, the minister also witnessed the signing of a Heads of Agreement (HoA) by ConocoPhillips (Grissik) Ltd and PT Pertamina EP to unitize their respective operations at Suban field. ConocoPhilips started production at Suban in 2002. The firm later found out that the field?s hydrocarbon resources coverage areas include Pertamina?s nearby concession. With the unitization the field is expected to increase its gas production by 13,000 BOEPD. (godang)

List of oil & gas contract signed on November 21, 2011

No Block Contractor

Commitment in three years

Commitment

Budget (US$ million )
1. Ranau Prabu Energy Pty Ltd Signature Bonus 1.0
G & G Study 0.5
Exploration Well 1 4.0
Seismic survey 2D (km2) 500 2.0
Seismic survey 3D
Total 6.5
2. Northeast Madura PT. Forbes Citra Nusantara Signature Bonus 1.0
G & G Study 0.6
Exploration Well 1 7.0
Seismic survey 2D (km2) 250 1.0
Seismic survey 3D
Total 8.6
3. West Tanjung PT. Karya Inti Petroleum Signature Bonus 1.0
G & G Study 1.1
Exploration Well
Seismic survey 2D (km2) 250 2.5
Seismic survey 3D
Total 3.6
4. Belayan PT. Geraldo Energy Signature Bonus 1.05
G & G Study 1.0
Exploration Well 1 7.0
Seismic survey 2D (km2) 100 1.5
Seismic survey 3D
Total 9.5
5. East Simenggaris PT. Cahaya Sumber Energi Pratama Signature Bonus 1.03
G & G Study 0,75
Exploration Well 1 6.0
Seismic survey 2D (km2) 300 3.0
Seismic survey 3D 30 1.8
Total 11.55
6. North Ganal Consortium Niko Resources Ltd - PT. Baruna Nusantara Energy - Statoil Asa - Eni Indonesia Ltd - GDF Suez New Project Indonesia BV Signature Bonus 1.076
G & G Study 0.4
Exploration Well 1 30
Seismic survey 2D (km2)
Seismic survey 3D 200 1.0
Total 31.4
7. Babar Selaru Consortium Inpex Corporation - JOGMEC Signature Bonus 1.5
G & G Study 1.5
Exploration Well
Seismic survey 2D (km2)
Seismic survey 3D 1500 30
Total 31.5
8. OBI Consortium Niko Resources (Overseas XII) Ltd - Statoil Asa - Manley NV Signature Bonus 1.076
G & G Study 0.3
Exploration Well
Seismic survey 2D (km2) 1000 1.5
Seismic survey 3D
Total 1.8
9. Semai IV Murphy Overseas Ventures Inc Signature Bonus 1.0
G & G Study 0.6
Exploration Well
Seismic survey 2D (km2) 500 1.85
Seismic survey 3D

Total

2.45

10. Arguni I Eni Indonesia Limited Signature Bonus ? 25
? ? ? G & G Study ? 1.5
? ? ? Exploration Well 2 55
? ? ? Seismic survey 2D (km2) 500 15
? ? ? Seismic survey 3D 500 15
? ? ? Total ? 86.5
11. East Jabung Pan Orient Energy East Jabung Pty Ltd Signature Bonus ? 1.5
? ? ? G & G Study ? 0.175
? ? ? Exploration Well 2 6.0
? ? ? Seismic survey 2D (re-pro) 200 0.05
? ? ? Seismic survey 2D (acquisit) 250 1.5
? ? ? Seismic survey 3D (km2) ? 7.725
? ? ? Total ? ?

List of oil & gas contract winner on November 21, 2011

No. Block Contractor (s) Commitment in three years
Commitment Budget (US$ million )
1. Offshore Timor Sea I Hess (Indonesia-V) Limited Signature Bonus 1.1
G & G Study 0.3
Exploration Well
Seismic survey 2D (km) 1,500 2.0
Seismic survey 3D
Total 2.3
2. Halmahera II Konsorsium Niko Resources (Overseas I) Limited - Statoil Asa Signature Bonus 2.0
G & G Study 1.0
Exploration Well
Seismic survey 2D (km) 6,000 9.0
Seismic survey 3D
Total 10
3. West Aru I BP Exploration Indonesia Limited Signature Bonus 1.25
G & G Study 1.0
Exploration Well
Seismic survey 2D (km) 2,000 0.2
Seismic survey 3D 1,000 10
Total 11.2
4. West Aru II BP Exploration Indonesia Limited Signature Bonus 15
G & G Study 1.0
Exploration Well
Seismic survey 2D (km)
Seismic survey 3D 4,000 40
Total 41

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