Govt to offer 10 more oil, gas blocks this year

The government said on Friday it would tender 10 more new oil and gas concession areas this year, raising this year's total number of oil and gas blocks on offer to 27.

The 10 offshore areas are located in Natuna, Makassar Straits, Arafuru Sea and South Sulawesi, said a press release from the Ministry of Energy and Mineral Resources.

They will be offered under regular tender mechanisms, the Ministry said. The Ministry, however, did not mention the exact time for the tender. However, the Jakarta Post said it would be in October.

It said further that the government was considering to extend the time for completing bidding documents for the 17 new oil and gas blocks offered last year, following a delay resulted by the introduction of a new ruling on taxation and customs in the sector. The Ministry needed more time to calculate changes of split in oil and gas output between the government and the investors.

They comprise 10 areas offered under regular tender and 7 offered under special mechanisms.

The government had initially planned to release bidding documents for the 10 blocks early this year and complete the whole bidding process by June.

Under the “special bidding” mechanism, any interested company could any time apply to acquire a new block without formal bidding session. Having received proposal from the company, the government would make announcement to invite other possible bidders. Provided that no other bidder emerges until the deadline, the block will be granted to the company sending the first proposal, other wise to the higher bidder. (Godang)