Govt closes 2nd round exploration offering

Government on Thursday formally closed this year?s second round exploration blocks offering with 15 oil, gas companies bidding for 8 out of 11 blocks offered.

?Announcement will be made in one month,? said Iin Arifin Takhyan, director general of oil and gas at the ministry of energy and mineral resources. Iin declined to reveal the bidders? names.

Several oil companies such as Total SA, ConocoPhillips, Caltex Pacific Indonesia and Exspan Nusantara had earlier indicated interest to participate in the bidding.

Iin said he was quite happy that the offer attracted bidders for 8 blocks. "Government will continue to evaluate the result of this tender as it would determine policy for next round offering," he said.

Government opened the tender for 11 exploration blocks, most of which are located offshore East Java, last February. The government offered more generous incentives including bigger contractors? split for the second round offering after first round offering held earlier this year had only succeed to award 1 out of the 17 blocks offered.

Earlier today, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that several foreign oil companies had proposed to acquire at least 6 exloration blocks outside the blocks the government was offering. Those blocks are located in Papua, Natuna and South Sumatra, he said.(godang)