Winners of exploration blocks tender to be announced Friday

Government said on Thursday it was scheduled to announce winner for second round exploration blocks on Friday with bidders taking 8 out of the 11 blocks offered.

Director general of oil and gas Iin Arifin Takhyan declined to disclose any detail except saying that companies from South Korea, Vietnam, Canada, Australia and Indonesia were among winners.

Sources close to the bidding process said among the winners are South Korean oil firm KNOC, PetroVietnam Investment and Development Company (PDIC), Australian oil firm Santos Limited, JSX-listed Medco Energi International, Canada?s Provident Energy and French oil major Total SA.

Government opened tender for 11 exploration blocks in February with 15 companies bidding for 8 blocks. Other bidders are Japan?s Inpex, Petronas Carigali and several local minor companies.

The blocks are Merangin I Onshore, Merangin II Onshore (both in South Sumatra), Rembang Offshore (northern part of Central Java), Bulu Offshore North (Central Java), South Madura Offshore, North East Madura I Offshore, North East Madura II Offshore, East Kangean Offshore, North Bali I Offshore, North Bali II Offshore (all East Java), Tarakan Offshore (Kalimantan).

Despite more generous incentives offered by the government, the bid failed to attract more major oil players. (godang/alex/arry)