Govt offers 2 areas of non-conventional oil and gas

The Indonesian government has offered two working areas of non-conventional oil and gas (MNK) as part of its efforts to increase oil reserves.

The energy and mineral resources ministry announced over the weekend that the two non-conventional working areas, offered through the scheme of direct proposal are MNK Barumun located in the area between North Sumatra and Riau province, and MNK West Tanjung in Central Kalimantan.

The ministry did not give any further details of the non-conventional working areas.

Previously on Wednesday, state owned oil and gas firm PT Pertamina signed a production sharing contract (PSC) to explore and develop shale gas potentials in northern Sumatra, making the firm the pioneer in the shale gas industry in the country.

The shale gas is one of the non-conventional sources being offered by the government to develop to compensate for the declining trend of the oil fuels (BBM) output. The other one is coal-bed methane (CBM).

The shale gas PSC, which was the first in the country, was signed during the annual 37th convention and exhibition of the Indonesian Petroleum Association (IPA) in Jakarta from 15th to 17th May 2013.

Also during the Indonesian Petroleum Association (IPA) convention and exhibition, the government offered 19 blocks in the first round tender of 2013 for investors to explore and develop oil and gas in various parts of the country.

The blocks were officially offered by President Susilo Bambang Yudhoyono in his speech to mark the opening of the annual IPA.

Editing by Benget Besalicto Tnb.