Six more contractors eying Palmerah block

Six other oil and gas production sharing contractors have voiced interest in Palmerah Block in Jambi/South Sumatra which the government offered to investors this month, an industry source told Petromindo.Com.

ConocoPhillips is the first firm to voice interest in the block.

The six other companies are Talisman Energy, Lundin Petroleum, Zodan NV and Zudavi NV, Petronas, Pertamina and Golden Spike, the source said.

The source said the seven oil and gas contractors had asked the government to postpone its plan to announce winner of the block contract on Oct. 31 because they need more time to make bidding proposals.

The government, this month, offered Palmerah and seven other oil and gas exploration blocks to investors through advertisements in the local newspapers. The seven blocks are West Salawati block offshore Papua; Bangkanai block onshore East Kalimantan; Asmat block in Papua; Halmahera block on and offshore North Maluku; Bontang block offshore East Kalimantan; Biliton block in Bangka Belitung; and Anambas block offshore West Natuna, Riau.

The eight blocks were not among the 11 blocks officially put into tender by the government early this year. The government has allowed investors to look for blocks other than those put in official tender. However, if a company expresses interest in a certain block, the government will put advertisement on the local newspapers to invite other firms to join bidding for the block. Should no other firms are interested in the block, the government will offer the block to the firm which first voice interest in it.

The government expects to sign contracts on the eight blocks next month. (godang)