RI to tender Makassar blocks

Indonesia intends to announce terms and conditions for six deepwater oil and gas exploration blocks by early January, a source at ministry of energy and mineral resources told Dow Jones Wednesday.

The blocks are located in the Makassar Strait, off Kalimantan, in water depth of over 1,000 meters, the official said.

The contractor's share of production from the blocks may reach 35 percent, under Indonesia's new incentive system, he said.

The ministry has already conducted two and three dimensional seismic survey of the blocks, the official said, adding that the blocks are near existing oil and gas fields operated by Unocal Corp and Totalfina Elf SA's subsidiary of Total Indonesie.

Any gas production from the fields could also feed a liquefied natural gas plant at Bontang, in East Kalimantan, he said. (*)