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Ministry announces tender winners for seven blocks
The government announced the winners on Thursday of tenders to explore for oil and gas in seven blocks in a combined investment worth over US$154
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The government announced the winners on Thursday of tenders to explore for oil and gas in seven blocks in a combined investment worth over US$154.78 million, with $9 million in bonuses to the government upon signing the contracts.
The Energy and Mineral Resources Ministry said PT Tansri Madjid Energi had won the Bengara II offshore block in East Kalimantan and PT Equator Energy the Seringapatam I offshore block in East Nusa Tenggara.
Both won through regular tenders and are committed to investing $98.35 million for exploration and paying $3.5 million in signature bonuses.
The other five blocks were awarded through a direct-bidding process.
These five companies will invest a total of $56.43 million and pay $5.5 million signature bonuses to the government.
Under the direct-bidding process, consortium participants conduct joint feasibility studies and usually have more knowledge about the block than in the regular tender process.
The Energy and Mineral Resources Ministry's director general for oil and gas, Edy Hermantoro, said that the seven blocks potentially contained a total of 560 million barrels of oil reserves. Some contained gas reserves, he added.
He said that the ministry had actually auctioned 23 oil and gas blocks during the second round of regular tenders last year and the first round of direct bidding this year.
'There were some blocks that didn't appeal to the bidders,' Edy said. 'We don't know why because all the areas we auctioned have tremendous potential,' he added.
He said that the blocks currently considered unappealing to bidders would be auctioned in another round next year.
Among those blocks are the North Madura II offshore block in East Java, the North Adang offshore block in the Makassar Strait and the Yamdena offshore block in Maluku.
Edy said that in total, the ministry would auction 27 oil and gas blocks next year through regular tenders and direct bidding.
The blocks put up for auction would consist of 20 conventional blocks, six shale-gas blocks and a coal-bed methane block.
'The move is aimed at boosting oil and gas production and to meet domestic demand,' Edy said.
According to British Petroleum Plc.'s 2013 Statistical Review of World Energy, Indonesia produced 64 million tons of oil equivalent of natural gas last year, 6.6 percent lower than the 68.3 million tons it booked in 2011. (koi)
