Govt names winners of 14 oil, gas block tenders

Antara News, Saturday, May 15, 2010 00:08 WIB

Jakarta (ANTARA News) - The government has named the winners of contracts on 14 oil and gas blocks offered in the second phase of its 2009 tendering-out program, an Energy and Mineral Resources Ministry official said.

The 14 blocks consisted of 11 offered through direct tenders and three through regular auctions, Edy Hermantoro, the ministry`s upstream oil and gas director, said here on Friday.

"The auction results this time are quite encouraging particularly those of the blocks offered through direct tenders," he said.

The promising bids for the blocks were inseparable from the improved global economy and the favorable oil price of US$80 per barrel, he said.

The auction results also indicated that Indonesia was still a promising investment destination including in the oil and gas sector, he said.

"The other indication is that such experienced companies as Black Gold and Respsol are among the tender winners. Repsol came back to Indonesia after leaving in the 1990s," he said.

He said only three bidders for 12 blocks put to regular auctions were named winners.

"This is because of risky regions so comprehensive knowledge of geology is needed," he said.

The other cause was a relatively short time so that it influenced the bidders` evaluation, he said.

"In the next tenders we will give investors enough time so they can make a comprehensive study," he said.

The winners of the blocks offered through direct tenders are PT Sargas & Vega for Puri Block, Cakra Nusa Darma (SKKMG) Ltd for Sakakemang Block, a consortium of Komodo Energy LLC-Niko Resources (Overseas XI) Ltd for Sunda Strait I Block, a consortium of PT Baruna Recovery Energy-Awe Ltd for North Madura Block, a consortium of PT Bumi Hasta Mukti-Fortune Empire Group Ltd for Mandala Block, PT Leogryph Indonesia for Karapan Block, PT Kalisat Energi Nusantara for Long Hubung Long Bagun Block, PTT Exploration and Production Public Co Ltd for Malunda Block, and a consortium of Talisman (Asia) Ltd-PTT Exploration and Production Public Co Ltd for South Mandar, Sadang, and South Sageri Blocks.

The winners of three blocks offered through regular auctions are a consortium of Repsol Exploracion SA-Niko Asia Ltd for Cendrawasih Bay II Block, and a consortium of Black Gold Ventures LLC-Repsol Exploracion SA for Cendrawasih Bay II and Cendrawasih Bay IV Blocks.

A total of 24 blocks were put to the second phase of tenders in 2009, consisting of 12 blocks offered through direct tenders and 12 blocks through regular auctions.