Govt to offer 65 new exploration blocks this year

Government will put 65 oil, gas exploration blocks for bidding this year in its effort to up the country?s oil and gas reserves, Minister of Energy and Mineral resources Purnomo Yusgiantoro said on Monday.

Purnomo said his ministry would offer 20 blocks through regular tender, while another 20 would be through direct offer system. Another 25 blocks are leftovers from previous tenders.

He, however, did not say when the bidding document for regular bidding would be available. Earlier, Director General of Oil and Gas Iin Arifin Takhyan said that the tender would be opened May due to uncompleted tax package. The government originally scheduled to open the bidding early this year.

Under the regular bidding system, the government would offer the blocks and interested parties submit their proposal. Under direct offer system, any company which has interest to acquire a certain block, which was not offered under regular bidding may express its interest to the government. The government would, through public announcement, try to find better offer from other firms. If that certain blocks draws no other bidder or the other bidder?s offer is less favorable, then the company would automatically get the block. (godang)