Govt to award oil block to Pertamina without tendering process
Saturday, January 20 2001 - 05:00 AM WIB
A senior official at the ministry of energy and mineral resources said the government would award an oil and gas block for state oil and gas company Pertamina to explore and develop without a tendering process.
Director general of oil and gas Rachmat Sudibyo told Petromindo.Com on Friday Pertamina was given the privilege to obtain the production sharing contract on the block without a tendering process to boost the performance of the state company.
The block was one of the 21 blocks the government had initially planned to offer to investors this month through auction, he said.
He however refused to name the block.
"The privelige (to obtain contract without tendering process) will be given to Pertamina on only one block. Let's see which block (will be awarded to Pertamina). Pertamina must already know," Rachmat said on the sidelines of the party to celebrate the gas delivery from the West Natuna area in the South China Sea to Singapore.
Separately, Pertamina's upstream director Gatot K. Wiroyudo said Pertamina was optmistic that the government would allow it to obtain one of the 21 blocks without tendering process, but he also refused to name the blocks being eyed by the state company.
"I'll tell you later. It's a party time now," Gatot told Petromindo at the party.
The ministry of energy and mineral resources, which took over the auction of the country's oil and gas blocks from Pertamina late last year, earlier said it planned to put in auction 21 blocks this month.
The blocks include six in the Makassar Straits (Taritip, Jangeru, Tanjung Aru, Donggala, Popodi, Papalang), two in the Natuna Sea (Nila, Anambas), six in the Arafura Sea (Amborip I, II, III, IV, V, VI), one in Central Kalimantan (Bangkanai), two in East Kalimantan (Tigau, Mentana), two in South Sulawesi (Polewali, Enrekang), two in the Seram Sea (Biga, Segaf).
The six blocks in the Makasssar Straits are the most favorite areas following the finding of significant oil resources by Unocal Indonesia Company, a subsidiary of American energy firm Unocal Corp..
Pertamina has voiced interest in several blocks in the Makassar Straits. (R. Amoros)