Pertamina Soon to Sign 21 New Oil and Gas Contract

Jakarta (IOGNews) - The government is ready to sign contract agreements by December of this year to develop 21 new oil and gas blocks. Those oil and gas blocks are direct offer tender submitted by contractors who found those blocks. The companies, which found those blocks have the first right to develop those blocks.

Out of 41 blocks, 20 blocks were offered through regular tenders and the remaining 21 blocks were offered through direct offer. The documents should be completed by December 26, 2006 if the companies are going to participate through regular tenders. Many foreign investors are interested to join the tenders. In 2008, the government set target of oil production to reach 1.3 million barrel per day.

The government offers a larger profit sharing portion (60-65%) to investor who can explore the oil and gas field, which located in difficult area or has higher risk. Out of the 41 blocks, Indonesia received at least USD51 million as bonus of signing contract agreement on 41 new oil and gas working fields. This revenue excludes profit sharing revenue and contractor investment.