Govt to auction off 50 oil and gas blocks this year

The Jakarta Post, Jakarta | Mon, 01/03/2011

The government will put up for sale 50 oil and gas blocks this year in two auctions, a senior official says.

Energy and Mineral Resources Ministry director general Evita Herawati Legowo said most of the blocks would be auctioned off in tenders.

“Only 11 blocks will be made available through a direct offer scheme,” Evita said as quoted by Antara news agency.

Evita said the government also planned to offer 10 coal bed methane blocks.

She said the move to auction off the blocks was part of the government's effort to improve the ministry's oil and gas sector.

She added that the government would improve its data on the blocks to make them more attractive to potential buyers and so that it could set credible prices for them.

Last year, the government targeted to auction 43 blocks, but only 21 found buyers, in part due to a lack of data on the blocks.