Government to tender 41 oil and gas blocks next month

Directorate general of oil and gas at the ministry of energy and mineral resources is scheduled to open bids for the exploration of 41 oil and gas blocks to both local and foreign oil companies in the second week of August, Investor Daily reported Thursday.

Director general Luluk Sumiarso said in Jakarta Wednesday that his office was still waiting for the approval from the minister to launch the tender.

"The new tender is part of the government's program to meet the target of raising the country's oil production to 1.3 million barrels per day in 2009," he was quoted as saying.

Ten of the oil blocks will be offered through a regular tender, and the other 31 blocks would be offered through a direct offer system.

He said that most of the 41 oil and gas blocks are located in deep sea off Natuna, Makasar, Java, Kalimantan and Sumatra.

According to him, the government will provide attractive incentives both in the forms of lower tax rates and better production sharing schemes to lure investors to enter the exploration in the 41 oil and gas blocks. (*)