Govt awards 9 oil, gas exploration blocks

Government on Friday announced the winners exploration blocks which were auctioned through 2008 regular bidding round.

Out of the 21 blocks offered earlier this year, only nine blocks got valid bidders.

Included as winners are Esso Exploration Ltd, a unit of US giant Exxon Mobil Corp., which was awarded Gunting Block on/offshore East Java, US oil firm Hess Corp which was awarded highly coveted Semai V Block in Papua, Swedish oil, gas firm Lundin Petroleum, which was awarded two blocks offshore Offshore West Natuna, namely Cakalang and Baronang Block.

A consortium of Murphy Oil, PTTEP and Inpex Corp was awarded Semai II Block offshore Papua.

According to Director General of Oil and Gas Evita Legowo, Murphy-PTTEP-Inpex consortium would pay US$11 million signing bonus and will invest $127 million on the block for the first three years, including drilling of three wells worth $90 million.

Hess, which will pay signing bonus of $40 million, will spend $143 million, including drilling 3 wells worth $135 million.

Hess was awarded the Semai V Block after beating five competitors including Total E&P, Murphy-PTTEP-Inpex consortium, Shell-Pertamina consortium, Marathon Oil and Exxon Mobil Corp.

According to Evita, planned total spending of the contractors for the fisrt three years would reach $465 million.(godang/Bernard)

Exploration blocks winners

No	Block	Location	Contractor(s)
1	CAKALANG	OFF. WEST NATUNA	Lundin Oil & Gas B.V
2	KERAPU	OFF. WEST NATUNA	Pearl Oil (Tachylyte) Ltd.
3	BARONANG	OFF. WEST NATUNA	Lundin Oil & Gas B.V
4	EAST BAWEAN I	OFF. NORTHERN EAST JAVA	Sintezmorneftegaz
5	GUNTING	ON/OFF. EAST JAVA	Esso Exploration International Ltd.
6	MAHAKAM HILIR	ON. EAST KALIMANTAN	SPC E&P Upstream Limited
7	SEMAI II	OFF. WEST PAPUA	Consortium Murphy Overseas Ventures Inc-PTTEP Public Company Ltd-Inpex Corp.
8	SEMAI III	OFF. WEST PAPUA	PT Suma Sarana
9	SEMAI V	OFF. WEST PAPUA	Hess (Indonesia-Semai V) Ltd.