Government to soon auction 10 oil blocks

The Ministry of Energy and Mineral Resources will auction off another 10 oil and gas blocks later in December in a bid to further increase the country's depleting oil production, Investor Daily Indonesia reported on Wednesday.

Novian M Thaib, Director for Exploration and Production of Gas and Oil, said in Jakarta on Tuesday the oil blocks to be offered in the auction would include an offshore oil block in Natuna Sea, an on land oil block in South Sumatera, an offshore oil block off East Java, an offshore block off Buton island, and three blocks off South Sulawesi, an oil block off East Kalimantan and another two oil blocks off South Papua.

The auction of the oil blocks would be the second to be made this year. In the first auction, which was held in September, the government offered 11 oil blocks through a competitive bidding and another 10 through a direct appointment.

Winners of the competitive bidding in the first auction include Anadarko Petroleum Corp which won the tender to develop the North East Madura III oil block, Petronas Carigali for North East Mdura IV and PT Waropen Perkasa for Manowari oil block.

The companies which won new oil concessions through direct appointment include PT Medco E & P (for Nunukan oil block), Transworld Exploration Area (for Seruway), PT Tropik Energi Indoensia (for Pandan), Altar Sociedade Inevstimento Imobiliario (for Barito), Genting Oil and Gas (for North West Natuna), PT Binakarindo Yasco Agung (for Air Komering), PT Sele Raya (for Belida), PT Easco East Sepanjang (for East Sepanjang) and PT Kutai Etam Petroleum (for Seinangka Senipah). (*)