Indonesia to Offer New O&G Coal Bed Methane Blocks - Official

JAKARTA (Dow Jones Newswires), Nov. 9, 2010

The Indonesian government will offer 24 new oil-and-gas blocks as well as nine coal bed methane areas later this month in an effort to boost output of the fuels, a government official said Tuesday.

"The number of the blocks could be higher," Evita Legowo, the director general of oil and gas at the Ministry of Energy and Mineral Resources told reporters.

Legowo said the government will offer the oil-and-gas blocks of East Asahan, North Kuantan, Indragiri Hilir, East Jabung, SW Sumatra III, SW Sumatra IV, North Merak, West Kangean, East Bangkanai, West Sebuku, SE Mandar, Gorontalo Basin I, Gorontalo Basin II, Gorontalo Basin III, Gorontalo Basin IV, SW Bird's Head, Arguni I and Arguni II via a regular tender process.

The Gurita, Sembilang, Kisaran II, South Betung, Sumbagsel and Arafura Sea II blocks will undergo a direct bidding process, she said.

The coal bed methane blocks that the government will offer via regular tender are Kampar, Pelalawan, Penajam Pasir I, Penajam Pasir II and Kendang. The Sijunjung, Kutai Barat, Kutai Timur and Kapuas blocks will be offered via direct tender process, Legowo said.

The government is struggling to boost its dwindling oil-and-gas production due to a lack of major new investments in the sector over the past decade due to uncertainties over the legal treatment of such investments.

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