Govt awards CBM, oil, gas exploration blocks

Ministry of Energy and Mineral Resources on Wednesday announced the award of three CBM exploration blocks and oil and gas blocks to international and local companies including a CBM block a consortium which members include BP Plc and Eni SpA.

Sanga-Sanga CBM PSC in East Kalimantan is awarded to a Consortium which members are Vico Indonesia Co LLC -BP East Kalimantan Ltd- Lasmo Sanga-Sanga Ltd (Eni)- OPIC Oil Houston Inc-Virginia Inter Co LLC- Universe Gas and Oil Co.

Sanga-Sanga CBM area overlaps with Sanga-Sanga PSC area operated by the same consortium and is currently producing gas to Bontang LNG plant.

Director General of Oil and Gas Evita Legowo said that the partnership has pledged to start CBM production from the block within two years? time.

Two other CBM blocks namely Rengat in Central Sumatra is awarded to Canadian firm Indon CBM Ltd and Barito in South Kalimantan to Trans Asia Resources-Jindal Stainless Steel Indonesia consortium. Both blocks are awarded through direct offer mechanism.

Firm exploration commitment for the first three for the three blocks are US$53 million including $3.1 million for G&G, $16.5 million for the drilling of 14 wells and the rest for pilot project phase 1. Total signature bonus reached $8 million.

Meanwhile, the government also award Blora oil, gas exploration block onshore Central Java to local firm PT Sele Raya and North Makassar Straits block offshore East Kalimantan to PT Baruna Nusantara Enery-Niko Resources Ltd consortium.

Sula I exploration block offshore North Maluku is awarded to PT Brilliance Energy. The block is the only one out of the 17 blocks offered by the government in 2009 regular exploration bidding round that produce winner.

Meanwhile PT Sarana Pembangunan Riau-Kingswood Capital consortium is awarded Langgak producing block in Riau. The block, which produces oil at marginal rate is previously operated by Chevron Corp.

First three-year firm commitment for the three blocks are US$34.7 million which included $6.9 million for G&G studies, $1.5 million for 1,000 km 2D seismic, $3.75 million for the drilling of three exploration wells.

Signature bonus received by the government for the three blocks is $3.25 million. (godang)

Direct Offer

No	Working Area	Contractor(s)
1	BLORA	PT SELE RAYA
2	NORTH MAKASAR STRAIT	CONSORTIUM PT BARUNA NUSANTARA ENERGY ? NIKO RESOURCES LTD

Regular Tender

No	Working Area	Contractor(s)
1	SULA I	PT BRILLIANCE ENERGY

Direct Offer (CBM)

No	Working Area	Contractor(s)
1	GMB BARITO KONSORSIUM	PT TRANS ASIA RESOURCES ? PT JINDAL STAINLESS INDONESIA
2	GMB RENGAT	INDON CBM LTD
3	GMB SANGA-SANGA	CONSORTIUM VIRGINIA INDONESIA CO LLC - BP EAST KALIMANTAN LTD-LASMO SANGA-SANGA LTD - OPIC OIL HOUSTON INC ? VIRGINIA INTER CO LLC ? UNIVERSE GAS AND OIL CO INC

Direct Offer Producing Block

No	Working Area	Contractor(s)
1	LANGGAK	CONSORTIUM PT SARANA PEMBANGUNAN RIAU ? KINGSWOOD CAPITAL LTD