Indonesia To Award Exploration Rights Soon

In February of this year Indonesia opened the tender for nine oil & gas blocks that included six areas in the Makassar Strait. Oil exploration rights for these blocks will be awarded later this month and new areas for tender will be opened in August. Several majors, such as BP, Unocal and TotalFinaElf are still being evaluated.

There are 14 new areas, including two in the sea off East Kalimantan and six in the Arafuru Sea off southeast Indonesia that will be included in the August tender.

Indonesia is the only Asian member of the OPEC cartel and is struggling to boost its oil production. The country produced 1.24 million barrels per day (bpd) of crude oil in June, compared with 1.23 million bpd in May. It also produced 130,000 bpd of condensates in June, compared with 120,000 bpd in May. Their OPEC quota is 1.255 million bpd.