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Jakarta Post

Four Indonesian oil and gas blocks up for auction

Four Indonesian oil and gas blocks up for auction Deputy Energy and Mineral Resources Minister Arcandra Tahar (JP/Dhoni Setiawan)
Stefanno Reinard Sulaiman
Jakarta   ●   Tue, November 6, 2018 2018-11-06 14:45 914 882ab4bc56dbda08a069b30877ad59b9 1 Business ArcandraTahar,oil-and-gas-blocks,auction,2018 Free

The government put four exploration blocks up for auction on Monday, marking its third effort this year, in a bid to push up oil and gas production in the country.

The four blocks are the South Andaman offshore block in Aceh, the South Saka Kemang onshore block in South Sumatra, the Anambas offshore block in Riau Islands and Maratua, an onshore and offshore block in North and East Kalimantan.

The four blocks are set to contribute at least US$8 million in signature bonuses, or $2 million each.

"The blocks have [been subject to] joint study [by several oil and gas companies] before, hence it will be an auction under a direct offer scheme," said Deputy Energy and Mineral Resources Minister Arcandra Tahar.

The direct offer scheme is for blocks that have been in joint study between the government and oil and gas companies.

For the third auction, participants are given time to access the bidding document from Nov. 5 to Dec. 17, while the deadline for the document submission is Dec. 19.

State-owned oil and gas holding company Pertamina was involved the joint study of the Maratua block, with reserves of 204.86 million barrels of oil (mmbo) and 890.09 billion cubic feet (bcf) of gas.

The South Andaman block is projected to hold 218.92 mmbo of oil and 1,234 bcf of gas; the South Saka Kemang block is seed to hold 106.33 mmbo of oil and 603.91 bcf of gas, and reserves at the Anambas block are estimated at 260.36 bcf of gas and 26.04 billion standard cubic feet of condensate. (bbn)