TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
From six offered blocks, only two get contractors
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Deputy Energy and Mineral Resources Minister Arcandra Tahar (JP/Dhoni Setiawan)
D
eputy Energy and Mineral Resources Minister Arcandra Tahar has said that from six oil and gas blocks that had been auctioned since August, only two had contractors that are ready operate them.
The two blocks are the onstream block South Jambi B, which would be operated by Hong Kong energy firm Hong Kong Jindi Group Co. Ltd, and exploration block Banyumas, which would be operated by local company PT Minarak Brantas Gas, an affiliate of the Bakrie Group.
Through the two deals, the government collected a total signature bonus of US$5.5 million and working commitments at $64 million.
Meanwhile, the four others are Andika Bumi Kita (ABK), the South East Mahakam (SEM), Makassar Strait and Selat Panjang.
The first two are exploration blocks and the latter two are onstream blocks.
Until Oct. 12, when the auction closed, no party was interested in operating the ABK or SEM blocks, the official said.
Meanwhile, there were companies that wanted to operate the Makassar Strait and Selat Panjang blocks, but they failed to meet the requirements to become operators of the blocks.
“The Makassar Strait and Selat Panjang blocks were an inch away from getting new contractors, but they failed to fulfill the requirements, so we turned them down,” Arcandra added.
Arcandra said the government might put the unsold blocks in the upcoming action, which is scheduled to open soon. (bbn)
