President Susilo to offer 48 oil and gas blocks during American visit

President Susilo Bamang Yudhoyono will offer at least 48 oil and gas blocks to American investors during his visit the United States later this month.

Director General of Oil and Gas Iin Takhyan said in Jakarta on Thursday that the President and delegation would use the opportunity to promote the investment opportunities in Indonesia during the state visit, which would begin in May 25.

During the visit, the President would offer the country's 48 oil and gas blocks to the American investors either through an open bid or direct appointment, Iin said, saying that the bidding for the oil and gas blocks was initially scheduled for May but it had to be delayed until June," he added.

He said that the bidding had been delayed so that investors would be able to get fiscal incentives, which were now being prepared to attract investors to enter the country's oil and gas exploration activities.

According to him, the government is studying the possibility of abolishing import duties and sales tax imposed on oil and gas exploration and production equipment in a bid to attract new investors in the oil and gas sector.

In addition, the government is also considering to provide investors a bigger share from the production of both oil and gas in order to make investment activities in oil and gas sector more attractive. At present, oil and gas companies receive 15 percent from oil production and about 35 percent from gas production. (godang)