Eight investors vie for oil and gas concessions<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Eight oil and gas companies are vying to gain concessions for
\neight oil and gas blocks in the country, a senior official said
\non Thursday.<\/p>\n
Director General of Oil and Gas Iin Arifin Takhyan said the
\ncompanies had submitted proposals to the government to explore
\nand develop hydrocarbon resources in the blocks, even though the
\ngovernment had not offered them in an open tender.<\/p>\n
\"We are now checking the blocks' coordinates and the
\ncompanies' working commitment,\" Iin said.<\/p>\n
Among the eight companies are U.S.-based ConocoPhilips and
\nMalaysian Genting Oil & Gas Ltd.<\/p>\n
The eight blocks are in Java, the Natuna Islands in the South
\nChina Sea, Central Kalimantan, Papua, Maluku, South Sumatra and
\nEast Kalimantan.<\/p>\n
The companies will not automatically get the concessions, as
\nthe government plans to issue a competitive tender for the blocks
\nin order to maintain transparency in the sector.<\/p>\n
\"The government will advertise the blocks in the newspapers
\nand invite other companies to make a bid,\" Iin said.<\/p>\n
If no other companies are interested in the blocks, the
\ngovernment would award them to the eight companies.<\/p>\n
\"If other companies voice their interest in the blocks, the
\nwinners would be those with the best working proposals,\" he said.<\/p>\n
The government revamped its procedures for exploration and
\nproduction contracts in oil and gas concessions in a bid to boost
\nits declining oil and gas output.<\/p>\n
In the past, oil and gas companies could only receive a
\nconcession through an official tender. Now, the government also
\naccepts proposals for blocks that are not included among those
\noffered in open tenders.<\/p>\n
Last month, the government awarded eight blocks to foreign and
\nlocal oil and gas companies through a competitive tender. The
\nwinning companies are to bring a total of US$170 million in fresh
\ninvestment to the sector.<\/p>\n
The better-than-expected tender result has raised hopes that
\nthe sector is picking up after being in a slump for several
\nyears.<\/p>\n
Declining investment partly contributed to the declining oil
\nand gas output.<\/p>\n
Indonesia currently produces 1.1 million barrels of oil per
\nday (bpd), lower than the quota of 1.317 million bpd set by the
\nOrganization of Petroleum Exporting Countries (OPEC).<\/p>\n
The government plans to offer more oil and gas concessions
\nnext month through competitive tenders.<\/p>\n
List of companies and blocks<\/p>\n
Blocks offered Companies<\/p>\n
1. Offshore Biliton, Java Sea PT Mitra Archipelago Indonesia<\/p>\n
2. Offshore East Natuna Genting Oil & Gas, Ltd (formerly Anambas)<\/p>\n
3. Onshore Central Kalimantan PT Kaliprada Mulia<\/p>\n
4. Offshore Salawati, Papua Pearl Holdings Ltd<\/p>\n
5. Onshore Asmat, Papua PT Indonesia Papua Petroleum<\/p>\n
6. Offshore Halmahera, Maluku PT Trivisindo<\/p>\n
7. Onshore South Sumatra ConocoPhillips<\/p>\n
8. Offshore Bontang, East Kalimantan PT Exsindo Petroleum Tabuhan<\/p>\n
Source: Directorate General of Oil and Gas, the Ministry of
\nEnergy and Mineral Resources<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eight-investors-vie-for-oil-and-gas-concessions-1447893297",
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"sponsor": "Okusi Associates",
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