Indonesia to Tender 27 Oil, Gas Blocks in 2014
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
Seringpatam I Offshore Nusa PT Equator Energy
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
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.
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