Govt to announce winners of oil and gas blocks tender

The government will announce the winners of the regular tender for 12 oil and gas blocks on Thursday in Jakarta, according to an official at the Ministry of Energy and Mineral Resources.

Director general of oil and natural gas Luluk Sumiarso said the Minister of Energy and Mineral Resources has approved the plan to announce the winners of the tender.

?The signing of contracts will be done by end of this March,? Luluk said in Jakarta on Tuesday.

Three blocks ? Karama, Mandar and Sageri ? in Makassar Strait became the stars of attraction as nine big companies competed to get them, he added. The nine companies are Total S.A, Manley NV, Premier Oil, Petronas, Esso Exploration, Talisman, Pertamina, Anadarko and Statoil ASA.

According to Luluk the government has actually 20 oil and gas blocks but the bidders were interested only in 12 blocks.

The 12 blocks that attracted bidders are believed to hold resources of between 30 and 400 million barrels of oil equivalent, while the inattractive eight blocks were thought to have a small amount of resources, Luluk said on Feb 16, 2007.

The 12 blocks are South East Mahakam in Kalimantan, West Air Komering in Sumatra, Karama in Makassar Strait, Mandar in Makassar Strait, Sageri in Makassar Strait, Ujung Kulon in West Java, Cucut in Natuna, Tuna in Natuna, Cakalang in Natuna, Baronang in Natuna, Enrekang in West Sulawesi and Lampung 1 in Lampung.

The government expected to get $25 million in signature bonus from investors that will win the 12 blocks, Luluk said. (Godang)