Govt signs 8 new, 1 extension block contracts

The government awarded on Friday contracts to nine companies to develop oil and gas resources in several areas of the country.

Eight of the nine companies got the contracts through "direct offer" system, while one company got an extension contract.

The eight companies are PT Sumatera Persada Energi, which got the contract to develop the West Kampar block, PT Bunga Mas Energi (Bungamas block), Endeavour Energy (Bengkulu) Pty Ltd (Bengkulu block), PT Bumi Parahyangan Ranhill Energia Citarum (Citarum block), PT Star Energi Sentosa (Sebatik) Ltd (Sebatik block), GreenStar Assets Limited (Offshore East Kangean block), Dutch company Zaraex NV (Lhokseumawe block), and regency-owned Benuo Taka (Wailawi field).

Aside from the eight companies, American firm ConocoPhilips has also reportedly won the Amborip VI block of Papua through the direct offer system. Yet, the firm was not among the compaines that signed contracts with the government on Friday.

?ConocoPhillips needs more time to finalize the agreement to be signed by the government,? an official at the ministry of energy and mineral resources Novian Thaib said.

The ministry said in a statement that the investors would invest a total of US$202.06 million for seismic surveys and explorations on the nine blocks over six years. Over the period, the investors will carry out geology and geophysical studies, acquire two-dimension seismic data on a total length of 8,175 kilometers, acquire three-dimension seismic data on a total area of 1,950 square kilometers and drill a total of 42 exploration wells.

Meanwhile, under the service contract with Benuo Taka, which is owned by Penajam Pasir Utara regency in East Kalimantan, the government will collect a fee of US$5 per barrel of oil and $0.25 per mmbtu of gas from the sales of Wailawi's future output.

The government also signed the extension contract for Sengkang block in Sulawesi with Australian firm Energy Equity Epic (Sengkang) Ltd. Aside from signature bonus of $500,000 from Sengkang, the government will receive a production bonus of $9.5 million from the firm, which will be paid in installment. (godang/dino)