Govt delays E&P blocks winners? announcement

Govt said on Monday it had decided to delay for two days winners? announcement of new exploration blocks that were offered through ?special bidding process? until Wednesday.

?We need more time to make decision,? said E&P Director at the Ministry of Energy and Mineral Resources Indrajana Chaidir.

Under the special bidding process, any interested bidder 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 until the closing date there were no other bidder, than the block would be granted to the said company. If other bidders emerge, government would grant the block to bidder, which offers more benefit to the government.

Eight international and local E&P firms had applied to acquire eight new blocks; 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 with Talisman Energy, Lundin Petroleum, Zodan NV, and Petronas submitted biddings. Other blocks that have drawn competitive bidders are Bontang block and Asmat block.

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 cannot reach agreement with government on split and terms and conditions.

State oil and gas company Pertamina, which had earlier state interest to bid in Palmerah block, had also failed to submit proposal until the closing date. (godang)