Govt set to tender of 40 oil, gas and CBM blocks in 2008

Government will auction off 30 oil and gas blocks and 10 coal bed methane/CBM blocks in 2008.

 

Director General of Oil and Gas at the Energy and Mineral Resources Ministry Luluk Sumiarso said in Jakarta last week that the government would propose a budget of Rp 106.2 billion to be allocated for the management, preparation and assessment of the 30 oil and gas blocks alone. “So next year we will tender 40 new block or maybe more,” he said.

 

Luluk explained that the blocks to be on offer in 2008 would also consist frontiers area in response to investors' growing interest in such areas.

 

He said that the government would also make some improvements in the oil ad gas contracts in the upcoming tender. “The improvements include those related to cost recovery,” he said.

 

According to Luluk, the government has received more than 100 joint studies on gas potentials from investors from various countries including the world’s big oil and gas companies.

 

For this year the government would tender of 25 oil and gas blocks. (godang)