Indonesia to Tender 27 Oil, Gas Blocks in 2014

Reuters

JAKARTA, Dec 19 (Reuters) – Indonesia plans to offer 27 oil and gas blocks in 2014 in both regular tenders and direct offers, a government official said, as the former OPEC member pushes to support its ballooning energy demands and reverse declining domestic output.

The blocks on offer include 20 conventional blocks, 6 shale gas blocks and 1 coal bed methane block, Oil and Gas Director General Eddy Hermantoro told reporters at a tender award ceremony in Jakarta on Thursday.

Also on Thursday, Canada-based Husky Energy Inc. won rights to develop the Anugerah Block off the coast of East Java, the government said, with a commitment to invest $4.91 million and a signature bonus of $1.5 million as part of the direct offer stage-I 2013 bidding round.

Direct offer tenders are preceded by a joint study process, in which oil and gas companies and the government work together to develop seismic data for certain blocks. Companies involved in the study then gain rights to match bids once the blocks are offered in the tender, discouraging other participants.

Indonesia's crude imports are expected to increase in 2014, after output declined to around 827,000 barrels per day in 2013.

Here are winners announced Thursday:

Regular Tender Conventional Oil and Gas Block Stage II 2012

Block           Location           Winner

Bengara II   Onshore and        PT Tansr Madjid Energi

                    offshore East      

                    Kalimantan         

Seringpatam I   Offshore Nusa      PT Equator Energy

                    Tenggara Timur     

The total investment commitment for the two investors for three years of exploration is $98.35 million, comprising G&G
studies worth $1.35 million, 1,000 kilometers of 2D seismic surveys, 400 sq km of 3D seismic surveys and six exploration wells. The total signature bonus was $3.5 million.
        
Direct Offer Conventional Oil and Gas Block Stage I 2013 
    Block           Location            Winner

Palmerah Baru   Onshore South      Consortium Bukit Energy
                    Sumatra and Jambi  Palmerah Baru Pte Ltd,
                                       New Zealand Oil and Gas
                                       Ltd, PT SNP Indonesia
Sakti           Offshore Central   Consortium Krisenergy
                    Java and East      (Sakti) B.V, PT Golden
                    Java               Heaven Jaya
North East      Offshore East      Golden Code Commercial
    Madura VI       Java               Ltd
Anugerah        Offshore East      Husky Energy
                    Java               International Corporation
East Bontang    Onshore and        PT Innovare Gas
                    Offshore East      
                    Kalimantan         

The total investment commitment for these five investors for three years of exploration is $56.43 million, comprising G&G studies worth $4.48 million, 3,050 km of seismic 2D surveys, 965 sq km of 3D seismic surveys and three exploration wells. The total signature bonus was $5.5 million.

Copyright 2017 Thomson Reuters. Click for Restrictions.

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