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Jakarta Post

From six offered blocks, only two get contractors

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Tue, October 23, 2018   /   01:46 pm
From six offered blocks, only two get contractors Deputy Energy and Mineral Resources Minister Arcandra Tahar (JP/Dhoni Setiawan)

Deputy 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)