Govt hopes investors to make last minute bids for 11 oil, gas blocks
Wednesday, July 30 2003 - 03:26 AM WIB
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Iin Arifin Takhyan, however, played down the low response of the oil and gas investors in the tender.
?You cannot yet conclude that the government has failed in the tender. Just wait and see what will happen when the deadline ends Thursday afternoon,? he told reporters.
But many observers were worried that this year?s tender would receive a low response like that in 2002. The government?s tender to offer 14 oil and gas concession areas last year received only one bidder.
Iin said that he was still optimistic that bidders would submit their bids during the last minutes before the deadline was passed. ?More than 40 companies have asked for data and profiles of the 11 oil and gas concession areas offered in the tender, and this indicates there are some interests from investors,? he said.
He, however, acknowledges if the number of bidders in the tender was far from expectation, the government should evaluate the tender process and find out why the tender was no longer attractive.
In fact, in this tender the government has offered a new incentive to attract investors such as the increase in the percentage of the oil production split for investors to between 20 percent and 25 percent from 15 percent at present. The percentage of gas production for investors has been also raised to 35 percent to 40 percent from 30 percent at present.
The 11 oil and gas concession areas offered in the tender include Merangin I Onshore, Merangin II Onshore (both in South Sumatra), Rembang Offshore (northern part of Central Java), Bulu Offshore North (Central Java), South Madura Offshore, North East Madura I Offshore, North East Madura II Offshore, East Kangean Offshore, North Bali I Offshore, Borth Bali II Offshore (all East Java), Tarakan Offshore (Kalimantan). (*)