Govt to announce winners of new exploration blocks Nov. 17

Government is expected to announce winners for eight new exploration blocks that are offered through ?special bidding process? on November 17 with formal signing expected on December 4, an official said.

?We will be waiting for proposals from new interested bidders until November 7,? said Indrayana Chaidir, E&P director at the ministry of energy and mineral resources. He said the government decided to delay announcement from earlier schedule of October 31 to give time for other interested companies to prepare their proposals.

Eight international and local E&P firms had applied to acquire eight new blocks; Genting Oil of Malaysia for Anambas block offshore West Natuna, Riau; ConocoPhillips for Palmerah block in South Sumatra; PT Mitra Archipelago for Biliton block offshore Java Sea; PT Kali Prada Mulia for Bangkanai block onshore East Kalimantan; Eksindo Petroleum Tabuhan for Bontang block offshore East Kalimantan; PT Tri Visindo for Halmahera block on and offshore North Maluku; Pearl Oil Limited for West Salawati block offshore Papua; and PT Indonesia Papua Petroleum for Asmat block in Papua.

Under the special bidding process, interested companies could apply to acquire any available blocks in Indonesia without having to wait for government to open the said blocks for tender. Having received proposal from interested companies, government would make announcement and inviting for other possible bidders to submit proposals. If until the closing date there were no other bidder, than the block would be granted to the said company. If other bidders emerge, government would grant the block to companies, which offer more benefit to the government.

Indrayana said Palmerah onshore block in South Sumatra is the hottest item in the bidding with Talisman Energy, Lundin Petroleum, Zodan NV, Petronas and Pertamina expected to submit biddings.

Other blocks that have drawn competitive bidders are Bontang block offshore East Kalimantan and Asmat block in Papua, said Indrayana.

Indrayana further said that two investors are also applying to acquire new blocks; Langsa onshore at the border of North Sumatra and Aceh, and Old Musi block onshore South Sumatra. He, however, declined to disclose the companies? names.

Last month, the government had awarded 8 exploration blocks and has opened next round of regular bidding by offering 10 new exploration blocks, with winners? announcement expected sometime next year. (godang)