Indonesia offers 41 oil/gas blocks to investors

Indonesia offers 41 oil/gas blocks to investors

Saturday, August 19th 2006

Forty-one oil/gas blocks in Indonesia are offered to investors in 2006, according to Lulu Sumiarso, director general of oil/gas development in the Energy and Mineral Resources Ministry.

Twenty oil/gas blocks are offered through tenders and 21 offered directly to investors, he told reporters at the opening of the Jakarta International Geosciences Conference and Exhibition here on Tuesday.

Unlike the previous oil/gas tenders, which were generally won by bidders that made the lowest bid, the winners of oil/gas tenders in 2006 will consist of those offering the biggest revenue to the state, he explained.

The 20 oil/gas blocks offered through tenders in 2006 include Tuna, Cucut and Dolphin blocks in Natuna offshore oil/gas-field, the West Air Komering block in South Sumatra onshore oil/gas-field, the South East Mahakam block in East Kalimantan offshore oil/gas-field.

Other oil/gas blocks put out to tenders this year are Karama, Malunda and Mandar blocks in West Sulawesi offshore oil/gas-field, Madang, South Mandar, Sageri and South Sageri blocks in South Sulawesi offshore oil/gas-field

In addition to those oil/gas blocks, there are seven available blocks that were once offered to investors, comprising Cakalang, Kerapu and Baronang blocks in Natuna offshore area, the Mentana block in East Kalimantan offshore area, the Enerekang block in South Sulawesi onshore area, the Lampung-I block in Lampung offshore area, and the Ujung Kulon block in West Java offshore area.

Twenty-one oil/gas blocks are offered directly to investors in 2006 based on the proposals of a number of national and foreign companies willing to make investment in oil/gas exploration and exploitation in Indonesia.

The 21 oil/gas blocks include Duyung block and Pari blocks in Natuna offshore oil/gas-field, the Tonga block in North Sumatra onshore area, Lemang block, Batu Gajah, Batanghari and Sekayu blocks in Central Sumatra onshore area, and the Karangagung block in South Sumatra onshore area.

Other oil/gas blocks offered directly to investors are the Alas Jati block in East Java onshore area, Gunting and Situbonda blocks in East Java onshore and offshore areas, North Kangean and Sibaru blocks in East Java offshore area, West Sangata, Mahakam Hilir and Wain blocks in East Kalimantan onshore area, the Kutai block in East Kalimantan offshore area.

Oil/gas blocks that are also offered directly for domestic and foreign investment are the Kuma block in West Sulawesi offshore area, the Kudong block in West Sulawesi onshore area, the Karana in Makassar Straits, and the Buton block in Southeast Sulawesi offshore area.

Concerning the general requirements that must be fulfilled by contractors to guarantee the safety of oil/gas exploration, the director general said the requirements are underlined in Government Regulation (PP) No.2/1992 on the control of gas exploration and exploitation, PP No.11/1994 and PP No.17/1997 on guide to oil/gas exploration safety.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said, meanwhile, that the exploration and exploitation of oil/gas-fields in Indonesia are still attractive, so more foreign investors are expected to enter this business sector.

For that purpose, the Indonesian government is determined to guarantee the business safety and create a climate conducive to the development of investment in the oil/gas Indonesia, he added.(*)


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