Update 1: Govt awards 9 oil, gas exploration blocks

(adds table)

Government on Friday announced the winners exploration blocks which were auctioned through 2008 regular bidding round.

Out of the 21 blocks offered earlier this year, only nine blocks got valid bidders.

Included as winners are Esso Exploration Ltd, a unit of US giant Exxon Mobil Corp., which was awarded Gunting Block on/offshore East Java, US oil firm Hess Corp which was awarded highly coveted Semai V Block in Papua, Swedish oil, gas firm Lundin Petroleum, which was awarded two blocks offshore Offshore West Natuna, namely Cakalang and Baronang Block.

A consortium of Murphy Oil, PTTEP and Inpex Corp was awarded Semai II Block offshore Papua.

According to Director General of Oil and Gas Evita Legowo, Murphy-PTTEP-Inpex consortium would pay US$11 million signing bonus and will invest $127 million on the block for the first three years, including drilling of three wells worth $90 million.

Hess, which will pay signing bonus of $40 million, will spend $143 million, including drilling 3 wells worth $135 million.

Hess was awarded the Semai V Block after beating five competitors including Total E&P, Murphy-PTTEP-Inpex consortium, Shell-Pertamina consortium, Marathon Oil and Exxon Mobil Corp.

According to Evita, planned total spending of the contractors for the first three years would reach $465 million.(godang/Bernard)

Exploration blocks winners

No	Block	Location	Contractor(s)
1	CAKALANG	OFF. WEST NATUNA	Lundin Oil & Gas B.V
2	KERAPU	OFF. WEST NATUNA	Pearl Oil (Tachylyte) Ltd.
3	BARONANG	OFF. WEST NATUNA	Lundin Oil & Gas B.V
4	EAST BAWEAN I	OFF. NORTHERN EAST JAVA	Sintezmorneftegaz
5	GUNTING	ON/OFF. EAST JAVA	Esso Exploration International Ltd.
6	MAHAKAM HILIR	ON. EAST KALIMANTAN	SPC E&P Upstream Limited
7	SEMAI II	OFF. WEST PAPUA	Consortium Murphy Overseas Ventures Inc-PTTEP Public Company Ltd-Inpex Corp.
8	SEMAI III	OFF. WEST PAPUA	PT Suma Sarana
9	SEMAI V	OFF. WEST PAPUA	Hess (Indonesia-Semai V) Ltd.

First three-year commitment of blocks winners

No.	Block	Contractor (s)	Commitment in three years
1.	CAKALANG	Lundin Oil & Gas BV
			Commitment		Budget (million US$)
			Signature Bonus		1.0
			G & G Study		0.50
			Exploration Well	-
			Seismic survey 2D (kms)	1,500	1.8
			REPRO 2D
			Seismic survey 3D
			Total		3.3
2.	KERAPU	Pearl Oil (Tachylyte)
			Signature Bonus		2.0
			G & G Study		4.0
			Exploration Well	1	15.0
			Seismic Survey 2D (kms)
			REPRO 2D (kms)
			Seismic Survey 3D	300	8.0
			Total		29.0
3.	BARONANG	Lundin Oil & Gas BV
			Signature Bonus		1.0
			G &a G Study		0.6
			Exploration Well	2	21.0
			Seismic Survey 2D (kms)
			REPRO 2D (kms)	1,000	0.2
			Seismic Survey 3D	640	8.6
			Total		31.4
4.	EAST BAWEAN I	Sintezmorneftegaz
			Signature Bonus		1.5
			G & G Study		2.325
			Exploration Well	1	14.0
			Seismic Survey 2D (kms)	750	1.125
			REPRO 2D (kms)
			Seismic Survey 3D
			Total		18.940
5.	GUNTING	Esso Exploration International Ltd.
			Signature Bonus		5.0
			G & G Study		5.0
			Exploration Well
			Seismic Survey 2D (kms)	400	12.0
			REPRO 2D (kms)
			Seismic Survey 3D
			Total		22.0
6.	MAHAKAM HILIR	SPC E&P Upstream Ltd.
			Signature Bonus		2.0
			G & G Study		3.3
			Exploration Well	4	8.0
			Seismic Survey 2D (kms)	200	2.0
			REPRO 2D
			Seismic Survey 3D
			Total		15.3
7.	SEMAI II	Consortium Murphy Overseas Ventures Inc-PTTEP Public Company Ltd-Inpex Corp.
			Signature Bonus		11.0
			G & G Study		1.5
			Exploration Well	3	90.0
			Seismic Survey 2D (kms)
			REPRO 2D
			Seismic Survey 3D	1,800	36.0
			Total		138.5
8.	SEMAI III	PT Suma Sarana
			Signature Bonus		6.0
			G & G Study		1.0
			Exploration Well	2	80.0
			Seismic Survey 2D (kms)	1,250	6.25
			REPRO 2D	785	0.196
			Seismic Survey 3D
			Total		93.446
9.	SEMAI V	Hess (Indonesia-Semai V) Ltd.
			Signature Bonus		40.0
			G & G Study		3.0
			Exploration Well	3	135.0
			Seismic Survey 2D (kms)	3,200	5.0
			REPRO 2D		-
			Seismic Survey 3D
			Total		183.0