Govt to offer more exploration acreages

Government is set to open new round of exploration blocks through direct offer mechanism, government official said Friday.

?The offer is scheduled to be opened on September 10,? said Novian Thaib, E&P director at the ministry of energy and mineral resources.

A Petromindo source said the blocks offered would be located onshore South Sumatra (2-3 blocks), Makassar Strait and East Kalimantan (3-4 blocks). The source said interested bidders, which apply for the blocks including Italian oil firm ENI SPA and Medco Energi International Tbk.

Under the direct offer system, when E&P company is interested to acquire certain blocks which is not on the offer, it 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 bidder which offers more benefit to the government.

The government is currently offering 10 exploration blocks for tender through regular bidding. Oil majors such as Total SA, ExxonMobil and ChevronTaxaco are reportedly interested on the blocks offered. (godang)