Winning bidders of three oil/gas blocks announced

Antara News, Fri, May 20 2011

Jakarta (ANTARA News) - The Indonesian government announced the three winning bidders for three oil and gas blocks auctioned through a regular mechanism on December 10, 2010 here on Friday.

They are Eni Indonesia Ltd. winning the bid for Arguni I Block in West Papua, Total E&P Activities Petrolieres winning the bid for South West Bird`s Head in West Papua and Pan Orient Energy Holding Ltd. winning the bid for East Jabung Block on the border of Riau, Jambi and South Sumatra.

The director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, said the fixed investment commitment for the three blocks in the first three years reached US$113.7 million.

"The signing bonus is US$31.5 million," she said.

The fixed investment commitment for Arguni I is US$86.5 million with the signing bonus of US$25 million. The investment commitment for South West Bird`s Head is US$19.5 million with a signing bonus of US$5 million, East Jabung US$7.725 million with a signing bonus of US$1.5 million.

Besides Eni, two other investors submitted their tender documents for Arguni I Block and for South West Bird`s Head, one investor besides Total submitted its tender document.

Pan Orient is the only one that submitted the tender document for East Jabung Block.

Evita said the fixed commitment for exploration consisting of geological and geophysical studies was US$4.17 million, for seismic and two dimensional surveys US$15 million and for drilling five exploration wells US$76 million.

The three blocks were part of offers made through a regular mechanism in the second round in 2010.

A total of 17 blocks had been offered through a regular bidding mechanism namely East Asahan, North Kuantan, East Jabung, South West Sumatra I, South West Sumatra II, North Merak, West Kangean and East Bankanai, West Sebuku Block, SE Mandar, Gorontalo Tomini, Tomini Bay I, Tomini Bay II, Tomini Bay III, SW Bird`s Head, Arguni I and Arguni II.

Evita said of the 17 blocks only 10 had attracted investors. "But four tender documents for four working areas have been submitted," she said.

Niko Resources Ltd. was interested om Tomini Bay II besides three other blocks. She said however that Niko could not meet the terms so that it could not be declared as the winner.

Besides the 17 blocks offered through a regular bidding the government has also offfered seven blocks through direct bidding in the second round namely Gurita, Sembilang, Marquisa, South Betung, Southern part of Sumatra, Damar and Arafura Sea II.

Editor: Aditia Maruli