Indonesia to offer East Java blocks for bid soon

Indonesia will shortly put up for offer a few exploration blocks in the East Java area under the third round of its newly introduced open tender system, an official at the Directorate General of Oil and Gas said Friday.

According to a spokesperson at the Directorate, the plan is to place fewer blocks on offer during the third round and to restrict them to available blocks in the East Java area to attract more interest.

The Directorate spokesperson said the plan for the new offering in the third round is due to a disappointing level of participation in the second round, in which 17 blocks mostly frontier acreage in Indonesia's eastern provinces were put up for bid and were received with less than enthusiastic response from operators, who want concessions near the country's population centers (Java and Sumatra), despite the more attractive terms and provision of detailed seismic and other geological data.

The new round three blocks are decided and are ready for release, but Directorate is awaiting word from Purnomo Yusgiantoro, the Minister of Energy and Mineral Resources.

According to the new oil and gas regulations, state oil company Pertamina no longer is involved in licensing. Directorate will carry out the licensing offer and awards, but the new government agency BP-Migas will actually sign contracts granting the awards to high bidders. (*)