Govt signs nine oil and gas contracts
Tuesday, October 14 2003 - 04:19 AM WIB
The contracts were awarded to PT Medco Energy for the development of the Merangin I block, PT Sele Raya (Merangin II block), Sebana Ltd (Bulu block), the consortium of KNOC Nemone Ltd, Petrovietnam Investment and Development Company and SK Corporation (North East Madura I block), the consortium of KNOC Nemtwo Ltd, Petrovietnam Investment and Development Company (North East Madura II block), PT Eksindo South Madura (South Madura block), Santos (NTH Bali I) Pty. Ltd (North Bali I block), Provident Energy Indonesia LLC (Tarakan block) and Orna International Ltd (Rembang block).
Previously, local papers quoted by Petromindo. Com mistakenly reported that the Rembang block would be awarded to Petroland Ltd.
The signing of the oil and gas contracts was held on the sidelines of the 29th annual IPA Convention and Exhibition in Jakarta.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro witnessed the signing ceremony.
The ministry said in a statement that the investors would invest a total of US$170.267 million for seismic surveys and explorations on the nine blocks over six years. Over the period, the investors will reprocess two-dimension seismic data on a total length of 1,150 kilometers, acquire two-dimension seismic data on a total length of 5,400 kilometers, acquire three-dimension seismic data on a total area of 2,500 square kilometers and drill a total of 33 exploration wells.
The nine blocks are among the 11 blocks offered by the government in a tender announced in February this year.
Normally, production sharing contractors get 15 percent of their oil output and 30 percent of their gas output. However, under the nine new contracts, the contrators will keep 25 percent of their oil output and 40 percent of their gas output. (Godang)
| No. | Working Area | Location | Company (s) |
| 1. | Merangin I Onshore | S. Sumatra | PT Medco Energi International |
| 2. | Merangin II Onshore | S. Sumatra | PT Sele Raya |
| 3. | Rembang Offshore | C. Java | Orna International Ltd (Rembang) |
| 4. | Bulu Offshore | C. Java | PT Petroland Energy |
| 5. | NE Madura I | E. Java | Consortium: Korea National Oil Co (KNOC), PetroVietnam Investment and Development Co (PIDC) |
| 6. | NE Madura II | E. Java | Consortium: Korea National Oil Co (KNOC), PetroVietnam Investment and Development Co (PIDC), SK Corp |
| 7. | South Madura | E. Java | Eksindo Petroleum Tabuhan |
| 8. | North Bali II | Bali | Santos Limited |
| 9. | Tarakan | E. Kalimantan | Provident Energy LLC |