Govt awards 7 new exploration blocks

Government will award on Friday 7 oil and gas blocks to local and foreign E&P firms with US oil major ConocoPhillips failed to acquire the block it wanted.

According to a government source, Palmerah onshore block, which is also coveted by ConocoPhillips and Australia?s Santos, will be awarded to a little known company Tately NV. Bangkanai block in East Kalimantan is awarded to Elnusa Holding, a subsidiary of state oil and gas company Pertamina. Bontang block is awarded to Eksindo Petroleum Tabuhan.

Asmat block is given to Indonesia Papua Petroleum, while West Salawati block given to Singapore-based Pacific East Asia Resources (Pte) Ltd, which is partly controlled by the Tahija family. Both blocks are located in Papua province.

Biliton block is given to PT Mitra Archipelago Investment and Halmahera blocks is awarded to PT Tri Vicindo.

All companies don?t have strong tract record in Indonesian E&P industry.

The source said exploration investment committed by the winners for survey and drilling amounted to US$173.55 million, of which $83 million will be spent in the first of three years, while the remaining in the second of three years.

Signing bonus received by the government is $6.7 million, payable 30 days after contract signing.

The new contracts will bring the total number of oil gas blocks awarded this year to 16. (godang)

No.	Working Area	Location	Area (km2)	Proposed by	Winner
1.	Offshore Anambas	Riau	2,989	Genting Oil (Malaysia)	-
2.	Onshore Palmerah	S. Sumatra	1,566	ConocoPhillips	Tately NV.
3.	Offshore Biliton	Bangka Belitung	6,600	Mitra Archipelago, PT	Mitra Archipelago, PT
4.	Onshore Bangkanai	E. Kalimantan	6,976	Kali Prada Mulia, PT	Elnusa, PT
5.	Offshore Bontang	E. Kalimantan	2,170	Eksindo Petroleum Tabuhan, PT	Eksindo Petroleum Tabuhan, PT
6.	Offshore Halmahera	Maluku	11,830	Tri Visindo, PT	Tri Visindo, PT
7.	Offshore W. Salawati	Papua	4,826	PEARL Oil Limited	PEARL Oil Limited
8.	Onshore Asmat	Papua	14,700	Indonesia Papua Petroleum, PT	Indonesia Papua Petroleum, PT