Govt announces winners of oil, gas & CBM working areas tender

The Energy and Mineral Resources Ministry on Wednesday announced winners of oil and gas working areas (WK) tender through "direct offer" tender mechanism conducted from October 10, 2011 to November 24, 2011.

At the same time, the energy ministry also announced winners of coal bed methane (CBM) working areas tender, which were offered from September 12 to October 27, 2011, also with "direct offer" mechanism.

The winners are committed to spend US$4.85 million for conducting seismic survey and drilling of exploration wells. Total investment for exploration is estimated to reach $38.15 million. The government secured signature bonus worth $6.5 million.

The energy ministry said six WKs attracted interest from bidders.

Following are the names of oil and gas WKs and the winners of tender Part II, 2011:

No.	Block	Contractor (s)	Commitment in three years
			Commitment		Budget (US$ million )
1.	Kalyani	Eurorich Group Ltd	Signature Bonus		1.0
			G & G Study		0.6
			Exploration Well	1	4.0
			Seismic survey 2D (km)	1,00	1.0
			Seismic survey 3D
			Total		5.6
2.	South Baturaja	PT. Anugerah Mutiara Sentosa	Signature Bonus		1.0
			G & G Study		0.6
			Exploration Well
			Seismic survey 2D (km)	4,00	4.8
			Seismic survey 3D
			Total		5.4
3.	North Baturaja	PT. Terra Global Vestal	Signature Bonus		1.0
			G & G Study		1.65
			Exploration Well	1	6.0
			Seismic survey 2D (km)	8,00	8.0
			Seismic survey 3D
			Total		15.65
4.	Kuala Pambuang	PT. Mentari ABDI Pertiwi	Signature Bonus		1.0
			G & G Study		1.2
			Exploration Well
			Seismic survey 2D (km)	2,00	3.0
			Seismic survey 3D	?	?
			Total		4.2
5.	Tanjung Aru	Consortium Serica Energy Pte - Neon Energy Ltd - Natuna Ventures Pte Ltd	Signature Bonus		1.0
			G & G Study		0.5
			Exploration Well
			Seismic survey 2D (km)
			Seismic survey 3D	5,00	5.0
			Total		5.5
6.	South East Seram	Niko Resources (Overseas XIX) Ltd	Signature Bonus		1.5
			G & G Study		0.3
			Exploration Well
			Seismic survey 2D (km)	1.067	1.5
			Seismic survey 3D
			Total		1.8

Out of eight CBM working areas that were offered, seven WKs attracted interest from oil and gas companies.

The winners of the direct offer tender for CBM WKs are as follows:

No.	Block	Contractor (s)	Commitment	Activities	Budget (US$ million )
1.	GMB BANGKANAI I	PT. Sugico Graha	G & G Study		0.6
			Core hole	2	2.0
?	?	?	Exploration Well	2	2.5
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		5.6
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
2.	GMB BANGKANAI II	PT. Sugico Graha	G & G Study		0.6
?	?	?	Core hole	2	2.0
?	?	?	Exploration Well	2	2.5
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		5.6
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
3.	GMB BANGKANAI III	PT. Sugico Graha	G & G Study		0.6
?	?	?	Core hole	2	2.0
?	?	?	Exploration Well	2	2.5
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		5.6
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
4.	GMB BANGKANAI III	PT. Sugico Graha	G & G Study		0.6
?	?	?	Core hole	2	2.0
?	?	?	Exploration Well	2	2.5
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		5.6
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
5.	GMB TANAH LAUT	PT. Sumber Daya Energi	G & G Study		0.6
?	?	?	Core hole	2	2.0
?	?	?	Exploration Well	2	2.5
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		5.6
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.5
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
6.	GMB KUALA KAPUAS II	PT. Citra Pita Niagatama	G & G Study		0.5
?	?	?	Core hole	2	0.8
?	?	?	Exploration Well	1	1.3
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.7
?	?	?	Total		3.3
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.075
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?	?	?	?	?	?
7.	GMB WEST SANGA-SANGA I	PT. Sugico Graha	G & G Study		0.6
?	?	?	Core hole	2	2.0
?	?	?	Exploration Well	21	1.25
?	?	?	Pilot Project Phase I - Production Test (Convert)	1	0.5
?	?	?	Total		4.35
?	?	?	Bonus
?	?	?	Signature Bonus	?	1.0
?	?	?	Equipment & Service	?	0.1
?	?	?	Production Bonus	?	?
?	?	?	- 250 BCF	?	0.25
?	?	?	- 500 BCF	?	0.5
?	?	?	- 1000 BCF	?	0.75
?

The winners of the CBM WKs are committed to spend at least US$4.1 million for geology study, $12.8 million for drilling of 14 core holes, $15.05 million for exploration wells drilling and $3.7 million for production testing.

The ministry said total investment commitment for exploration will reach $35.65 million.

The government secured $7.5 million in signature bonus from CBM WK tender. (godang)