Total E&P eyeing two oil, gas blocks to be tendered in 2012
Friday, March 2 2012 - 10:08 AM WIB
French oil and gas company Total E&P Indonesie has expressed its interest to develop two oil and gas blocks, namely Telen block in East Kalimantan and Mentawai block in west coast of Sumatra.
?Total E&P Indonesie is studying Telen and Mentawai blocks. It is possible that the company would take part in tender through direct offer mechanism,? an industry source told Petromindo.com.
Chief Executive Officer of Total E&P Indonesie, Elizabeth Prouz told reporters early this week that the company is eyeing 1 oil and gas block that has gas potential of up to 1 trillion cubic feet. She however declined to disclose the name of the block.
Under the current regulation, the government may offer oil and gas blocks through two possible tender mechanisms, either through regular competitive bidding process or direct offer mechanism.
Under direct offer mechanism, the production sharing contractor (PSC) submits joint study proposal to the government over particular working area (WK). Usually, the company which conducts the joint study mechanism will be prioritized to be selected as developer of the particular block.
Total E&P is Indonesia?s largest gas producer, currently contributing about 30 percent of Indonesia?s total gas production. It is the key supplier to Bontang LNG plant in East Kalimantan.
Editing by Roffie Kurniawan