Government to formally award oil blocks on Dec 12

The government will formally award 7 new exploration blocks and renewed the contract of two oil, gas blocks on December 12, according to a government official.

?Some of the oil firms had sign the contracts,? said Rachmat Sudibyo, director general of oil and gas at the ministry of energy and mineral resources.

According to Petromindo.com data, government had awarded Donggala block to French giant TotalFinaElf, Tanjung Aru block to Amerada Hess, Popodi block to Zodan NV and Papalang block to Zudavi NV. The four blocks are located in the deep sea of Makassar Strait where US oil firm Unocal Corp. had significant oil, gas finding.

US oil firm Conoco Inc had won Nila offshore block in West Natuna, while Anglo-American energy giant BP Plc. won Bawean II block offshore East Java.

Gulf Indonesia Resources will form a joint operating body with state oil, gas firm Pertamina to explore Sakakemang block in South Sumatra.

Rachmat also said that Pertamina would extend the contract of Rimau production sharing contract (PSC) in South Sumatra and Tarakan PSC block in East Kalimantan to Exspan, a subsidiary of local oil, gas firm Medco Energi International. (godang/alex)