T

he government will auction 24 oil and gas blocks, and nine coal bed methane (CBM) blocks in the second petroleum bidding round, which will be held soon, an official says.

The blocks will be offered both under the regular tender mechanism and the direct offer mechanism, director general for oil and gas Evita Herawati Legowo said as quoted by the directorate’s official website on Monday.

Under the direct offer mechanism, the government will team up with oil and gas contractors to conduct a preliminary survey and when the blocks are auctioned, the partnered companies will get a second change to beat the tender’s winner.

Of the total 24 oil and gas blocks, 18 will be offered through the regular tender and the remaining six will be offered through the direct offer mechanisms.

The 18 blocks to be offered under the regular tender are the East Asahan block, North Kuantan block, Indragiri Hilir block, East Jabung block, SW Sumatra III block, SW Sumatra IV block, North Merak block, West Kangean block, East Bangkanai block, West Sebuku block, SE Mandar block, Gorontalo Basin I block, Gorontalo Basin II block, Gorontalo Basin III block, Gorontalo Basin IV block, SW Bird’s Head block, Arguni I block and the Arguni II block.

The six blocks to be offered under the direct offer are the Gurita block, Sembilang block, Kisaran II block, South Betung block, South Sumatra block and the Arafura Sea II block.

The government will also offer the nine CBM blocks under the two mechanisms — five blocks will be offered under the regular tender and four others will be offered under the direct offer mechanisms.

The blocks to be offered under the regular tender are the Kampar block, Pelalawan block, Penajam Pasir I block, Penajam Pasir II block and the Kendang block.

The four blocks to be offered under the direct offer are the Sijunjung block, West Kutai block, East Kutai block and the Kapuas block.

The government set a target to produce as much as 965,000 barrels oil per day this year.