Govt awards 14 gas, oil, shale gas contracts
Wednesday, May 15 2013 - 10:46 AM WIB
The government awarded on Wednesday 14 contracts for investors to explore and develop oil, gas and shale gas in various parts of the country.
The production sharing contracts (PSC) were signed during the annual 37th Indonesian Petroleum Association (IPA) conference in Jakarta with President Susilo Bamang Yudhoyono and Minister of Energy and Mineral Resources Jero Wacik standing as witnesses.
The 14 PSCs consist of 13 oil and gas PSCs and one shale gas PSC. The 13 oil and gas PSCs, which were offered in the second round tender of 2012 through direct offer mechanism, cover Merangin III, Air Sugihan, Bimasakti, Offshore North X-Ray, Sanggau, Menduwai, Kahayan, West Bangkanai, North East Tanjung, North East Bangkanai, Offshore Mangkalihat, Central Mahakam and West Sebuku blocks.
One contract on MNK Sumbagut shale gas block was offered to PT Pertamina Hulu Energi MNK Sumatra Utara.
The recipients of the 13 oil and gas PSCs have a three-year exploration commitment worth a total of US$77.29 million including geological and geophysical studies worth a total of $8.7 million, a total of 4,200-km 2D seismic survey, 760 sq km 3 D seismic survey and the drilling of five exploration wells. They pay $14.5 million in signature bonuses after signing the contracts.
Also signed during the event were a PSC amendment on Warim block which is operated by ConocoPhilips Warim Ltd and six gas sales and purchase contracts. Under the Warim PSC amendment, ConocoPhilips is committed to invest $50 million for 550 km 2D seismic survey and the drilling of one well. Meanwhile, the gas sales and purchase contracts will generate $571.4 million in new revenue for the government.
Editing by Johannes Simbolon