Tender oil, gas blocks may be delayed again

Planned tender for 25 oil and gas blocks scheduled for this month may be delayed on unsettled problems, including the issue of cost recovery.

 

“There are several things that have to be solved first,” said Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Luluk Sumiarso in Jakarta Wednesday.

 

Luluk explained that the preparation for the tender is almost completed. The directorate has consulted with concerned parties in regards to the tender in areas where drilling activities will be conducted. However, he said, the directorate is still waiting for the clarity on cost recovery.

 

“That's why, we are still not able to carry out the tender,” kata luluk.

 

The ministry earlier said that it would hold the tender at the end of this month. According to the initial plan, 11 of the oil and gas blocks will be offered through a competitive bidding or regular tender and the other 14 blocks through a direct offer mechanism. (godang)