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Jakarta Post

Oil and gas blocks fail to entice investors

  • Fedina S. Sundaryani

    The Jakarta Post

Jakarta   /   Mon, May 9 2016   /  08:17 am

Oil and gas business players continue to show their reluctance to invest in local blocks amid low crude prices.

The Energy and Mineral Resources Ministry announced last week that none of the eight oil and gas blocks put up for tender last year had gained a winning bidder even though companies were given a lengthy four-month deadline to register an offer.

The ministry’s oil and gas director general IGN Wiratmaja Puja said that Azipac Limited had expressed interest in the Oti block and PT Agra Energi Indonesia had registered for the Kasuri II block. However, both companies proposed offers that were below the minimum amount required.

“The bidders proposed an offer under the minimum amount required for the Oti block and the Kasuri II block so there were no winners for either block,” he said.

The lack of bids was emphasized by the fact that the government...