MEMR: Result of 2016 block tender not so encouraging
Friday, September 9 2016 - 02:01 PM WIB
The Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources said that the result of the first round 2016 oil and gas block tender was not so encouraging.
"The result of the tender is enough to make us worry because there are some working areas that received no interest (from investors)," Director General of Oil and Gas at the ministry IGN Wiratmaja said in Jakarta on Friday.
According to him, oil and gas blocks in Indonesia actually have a great potential, but have generally failed to gain sufficient interest from investors.
In the first round of 2016 oil and gas block tender, the ministry offered 14 conventional blocks and one conventional block at the 40th IPA Convention & Exhibition on May 28, 2016.
Director for Engineering and Environmental at the ministry, Djoko Siswanto, who is also the Acting Director of Upstream Management, said that in the direct bidding mechanism, there were several entities that submitted their bids.
"Last May, we had auctioned seven oil and gas blocks through direct bid. Of the four companies that have taken the bids, only three companies submitted their bids," Djoko said to Petromindo.com, without providing in details the name of the companies and the blocks.
The blocks offered through the direct bidding mechanism are as follows.
1. Bukit Barat, Offshore Natuna Islands
2. Batu Gajah Dua, Onshore Jambi
3. Kasongan Sampit, Onshore Central Kalimantan
4. Ampuh, Java Sea
5. Ebuny, Offshore Southeast Sulawesi
6. Onin, Onshore and Offshore West Papua
7. West Kaimana, Onshore and Offshore West Papua
Editing by Reiner Simanjuntak