Govt delays again announcement of winners of new blocks

The government has again decided to delay the announcement of the winners of “the special bidding” for oil and gas blocks

Indrajana Chaidir, director of exploration and production at the Ministry of Energy and Mineral Resources told Petromindo.com on Wednesday that Minister of Energy and Mineral Resources Purnomo Yusgiantoro had yet to approve the list of the winners of the special bidding.

The ministry was scheduled to announce the names of tender winners today (Wednesday). Actually the original schedule was on Monday, but the government decided to delay it for two days.

Indrajana said at that time the government needed more time to take decision on the oil and gas blocks.

Under the “special bidding” process, any interested company could any time apply to acquire a new exploration block from the government without having to wait for formal bidding session to be opened. Having received proposal from interested companies, government would make announcement to invite other possible bidders to submit proposals. If no other bidder emerges until the deadline set by the government, the block will be granted to the company, which sends the first proposal. If new bidders emerge, government would grant the block to bidder, who offers most benefits to the government.

Eight international and local firms have applied to acquire eight new blocks, that is Genting Oil and Gas Ltd. of Malaysia for Anambas block offshore West Natuna, Riau; ConocoPhillips for Palmerah block in South Sumatra; PT Mitra Archipelago for Biliton block offshore Java Sea; PT Kali Prada Mulia for Bangkanai block onshore East Kalimantan; Eksindo Petroleum Tabuhan for Bontang block offshore East Kalimantan; PT Tri Visindo for Halmahera block on and offshore North Maluku; Pearl Oil Limited for West Salawati block offshore Papua; and PT Indonesia Papua Petroleum for Asmat block in Papua.

Palmerah block is the hottest item, attracting a number of bidders, including Talisman Energy, Lundin Petroleum, Zodan NV, Pertamina and Petronas. Other blocks that have drawn interest from other companies are Bontang and Asmat blocks.

Indrajana said Genting Oil had decided to pull out its proposal to acquire Anambas exploration block. He did not disclose the reason, but a Petromindo.Com source said the company pulled out because it could not reach agreement with government on split and terms and conditions.

State oil and gas company Pertamina, which was also interested in Palmerah block, failed to submit proposal until the deadline. (godang)