Indonesia Seeing Some Interest in Licensing Round

Although Indonesia has seen interest in the eleven blocks up for bid in its latest licensing round announced last month, most oil majors are awaiting the outcome of the new regulations governing exploration. The blocks are located all across Indonesia, five are in East Java province, one in North Central Java, two are in North Bali, two in Jambi province and one in East Kalimantan. "There are several companies that have shown their interest in the oil blocks, including TotalFinaElf," Indonesia's Director General Oil and Gas Iin Arifin Takhyan said in a statement.

A spokesperson from TotalFinaElf said the company is willing to consider new exploration licenses. However, the oil major is waiting on the Indonesian government to finalize new regulations on upstream production.

Indonesia is still processing new government regulations to determine how upstream production will be handled and how revenue is to split between the parties. The new regulations would have to be signed by President Megawati Sukarnoputri and are expected to be final in two or three months. The new rules are needed following changes in Indonesian energy laws and the role of one-time state monopoly Pertamina.