Govt to modify tender procedures to attract oil, gas exploration
Thursday, August 21 2003 - 09:25 AM WIB
?Government will offer three systems for E&P venturers to acquire exploration block,? said director general of oil and gas Iin Arifin Takhyan.
First system, said Iin, is through regular tender process where government offers exploration blocks and companies would compete to win.
Secondly, if at the closing date certain blocks offered failed to attract any bidder, than offer for that certain blocks will be extended until the first interested bidder emerges. The bidder will automatically get the block. ?For example, if in this round tender there are 3 out of the 11 blocks offered failed to attract bidders, than offering for the three blocks would be extended, and if one bidder comes later ask for, say, one of the blocks, the bidder will automatically granted exploration right for that certain block,? said Iin.
The third alternative, said Iin, is when E&P company is interested to acquire certain blocks which is not on the offer, the bidder could come directly to the government and ask for the block. Government would then make announcement that the company is interested to acquire the block and invites other investors to submit their bid for the block. 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.
?Through the three systems, we could accommodate investors interests quickly, efficiently and transparently,? said Iin.
Government is scheduled to award 8 out of the 11 blocks offered in February on Friday.
Minister of Energy and mineral Resources Purnomo Yusgiantoro said that there are currently 5 international E&P companies expressing interest to acquire exploration blocks, which are not on the offer and said the third system would be applied to accommodate their interests. (alex)