Update 2: Indonesia offers 41 oil and gas blocks to investors
Tuesday, August 15 2006 - 04:42 AM WIB
The Indonesian government announced on Tuesday the auction of 41 new oil and gas blocks to investors.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the 41 blocks include 21 blocks that investors could acquire through ?direct offer? mechanism, 20 blocks that investors could acquire through regular tender mechanism.
Of the 20 blocks offered through regular tender mechanism, 12 are new acreages and the remaining 8, termed as ?available blocks?, are among the blocks that failed to attract investors in the previous auction.
``About 30 percent of our state budget comes from oil and gas and we'd like to continue having this contribution,'' Purnomo Yusgiantoro told an oil and gas investors forum.``I invite you to participate in this tender and hope that we can increase oil and gas production in the country.''
The 21 blocks through direct offer mechanism are Duyung, Pari (Natuna), Tonga (onshore North Sumatra), Lemang, Batugajah, Batanghari (onshore South Sumatra), Karang Agung, Sekayu (onshore Bengkulu), Alasjati, Gunting, Situbondo, North Kangean (ohshore East Java), Sibaru (onshore East Java), West Sangatta, Kutai, Mahakam Hilir (onshore East Kalimantan), Wain, Kuma (South Sulawesi), Budong-Budong (South Sulawesi), Karana (Makassar Straits), On/off shore Buton (Southeast Sulawesi).
The 12 new acreages are Cucut, Tuna, Dolphin (offshore Natuna), West Air Komering, Karama (Makassar Straits), Malunda (Makassar Straits), Mandar (Makassar Straits), Sadang, S.Mandar, Sageri, South Sageri (Makassar Straits), South East Mahakam
The 8 available blocks are Cakalang, Kerapu, Baronang, Tigau, Mentana, Enrekang, Lampung 1, Ujung Kulon.
Under the direct offering system, companies identify the blocks they wish to develop and the government advertises to see if there are any rival bids. The government will announce the winners of exploration rights for such areas in 45 days, the ministry?s director general of oil and gas Luluk Sumiarso said. The government may take as long as four months to decide on the winners of areas offered through regular tender mechanism.
Prospective bidders can get bidding document and direct proposal starting August 28, Luluk said.
The deadline for submitting the document for direct offering is on October 11 and December 26 for the regular tender, according to Luluk.
Officials from Chevron Indonesia and ExxonMobil said their companies were interested in the tenders, but they refused to identify the blocks eyed by both companies. (Godang)