Unocal, Eni eyeing new exploration blocks
Tuesday, March 16 2004 - 02:28 AM WIB
U.S. independent oil company Unocal Corp, Italian oil firm ENI SPA and Malaysian oil firm Petronas are among seven bidders that are applying to acquire exploration blocks through special bidding process, a Petromindo.Com source said Tuesday.
The government said earlier that seven oil and gas firms are applying to get exploration licenses in East Kalimantan (Nunukan, Bulungan, Tigau and Ambalat blocks), in onshore South Sumatra's Lubuk Linggau, in Aceh (Seruai), and in Papua (Bovendigul). The source said that another company that is applying for license is Malaysian oil firm Genting Oil & Gas. The source did not reveal the names of another three bidders.
The source also said that another E&P company, UK-based Transworld E&P is also seeking to acquire an exploration block in Aceh.
Under the “special bidding” process, any interested company could any time apply to acquire a new exploration block from the government without having to wait for formal bidding session to be opened. Having received proposal from interested companies, the government would make announcement to invite other possible bidders to submit proposals. If no other bidder emerges until the deadline set by the government, the block will be granted to the company, which sends the first proposal. If new bidders emerge, government would grant the block to bidder, who offers most benefits to the government.
The government had delayed the announcement of the winner of the special block and the opening of the regular tender for 10 new exploration blocks due to difference of opinion in fiscal regime between Ministry of Energy and Mineral Resources and Ministry of Finance. Ministry of finance that the new licensees must pay taxes even though they are still at exploration stage. Ministry of Energy and Mineral Resources plans to give more favourable split to investors to compensate the taxes that must be paid. Government is expected to announce the winners in June. (godang)