The contracts were awarded at the end of the government's second petroleum bidding round for 2009, which was held from December 2009 to April 2010.

The government had offered 23 oil and gas blocks at the auction: 12 through regular tender and 11 as direct offers.

The government awarded contracts for 14 blocks: 11 under as direct offers and three as regular tender, Edy said.

Nine blocks were not awarded.

Blocks offered under the direct offer mechanism are considered less risky for investors because oil and gas contractors have already started early exploration of the blocks, he said.

Those contractors will be given priority to develop the blocks if initial surveys are promising, Edy said.

The total committed investment will consists of $13.15 million for G&G (geology and geophysics) works, $15.45 million for 2D seismic surveys, $28.5 million for 3D seismic surveys and $89.66 million to develop eight exploration wells, Edy said.

The government will also receive more than $14.6 million in contract signing bonuses, he added.

The results of the latest round of bidding were much better than previous auctions, Edy said.

The government could not find investors for 16 out of a total 24 blocks offered in the last two bidding rounds.

Current auction results improved in tandem with the global economy, Edy said. An increase in the price of oil to the $80 level also motivated investors, he added.

Investors were awarded three of 11 blocks under the regular tender mechanism. Edy said the location of the blocks had made investors very cautious.

"Most of the blocks are in eastern Indonesia, which is riskier".

Spain's Consortium Repsol Exploracion won three blocks offshore Papua. The company has long experience in oil and gas, Edy said.

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