Oil and gas firms set to sign contracts today

Several oil and gas firms are expected to sign the contracts of work with the Upstream Oil and Gas Regulating Body BP MIGAS today (Tuesday).

R. Priyono, Ministry of Energy and Mineral Resources' director for the upstream oil and gas industry said Tuesday that 16 winners of direct offer tender have signed the contract and two other winners, PT Insani Bina Perkasa and consortium PT Hexindo Gemilang Jaya-PT Indelberg, delayed (in signing the contract of work) because they failed to provide a bond guarantee.

PT Insani Bina Perkasa wins Alas Jati block in onshore East Java and consortium PT Hexindo-Indelberg for Lemang block in onshore Jambi.

On December 13, 2006, the government announced the winners of the tender through direct offer mechanism for 18 oil and gas blocks from the 21 blocks offered.

The three that did not have the winner are Situbondo, Gunting and Mahakam Hilir blocks. Based on the government calculation, the total investment from the investors on these 18 oil and gas blocks could reach US$235.8 million, with the bonus for signing the contracts amounting to $31.45 million. (godang)