Govt awards seven oil and gas contracts<\/p>\n
JAKARTA (JP): The government awarded on Monday seven oil and
\ngas contracts -- the first of the year -- to four international
\nand three local companies.<\/p>\n
The contracts, with a total investment commitment of over
\nUS$112 million for 10 years, were described by Minister of Mines
\nand Energy Susilo Bambang Yudhoyono as a sign of investors'
\nconfidence in Indonesia.<\/p>\n
\"The signing of these contract today confirms that Indonesia
\nis still an attractive country for oil and gas investment,\"
\nBambang said during the signing ceremony.<\/p>\n
The seven oil companies signed three production-sharing
\ncontracts and four technical assistance contracts with state oil
\nand gas company Pertamina.<\/p>\n
The oil companies awarded the production-sharing contracts
\nwere Australian-based Energy Equity Pty. Ltd., which will operate
\nSulawesi's offshore Bone Bay; Kalrez Petroleum, also from
\nAustralia, which will operate Maluku's Bula block, and Kuwait's
\nKufpec Indonesia Ltd., operating on Maluku's offshore Seram
\nblock.<\/p>\n
The recipients of the technical assistance contracts were
\nEnergy Equity for South Sumatra's Gajah Besar field; PT Indama
\nPutera Kayapratama for South Sumatra's Kaya field, PT Binatek
\nReka Kruh for South Sumatra's Kruh field; PT Wahana Sad Karya and
\nTaiwan's First Union Resources Co. Ltd. for the Jatirarangon
\nfield in West Java.<\/p>\n
Under the existing regulation, oil companies must sign all
\ncontracts with Pertamina, which holds the monopoly right to the
\noil and gas sector.<\/p>\n
Under the production-sharing contracts, oil companies are
\nentitled to receive 15 percent of the oil and gas production,
\nwhile 85 percent is transferred via Pertamina to the government.<\/p>\n
Bambang said he expected more contracts to be signed this
\nyear, given the significant contribution of this sector to the
\ngovernment's revenue.<\/p>\n
He said that oil and gas contributions accounted for some 32.8
\npercent of the government's total revenue during the 1999 to 2000
\nfiscal year.<\/p>\n
Pertamina's director of exploration and production Gatot K.
\nWiroyudo said that aside from the first 10-year investment
\ncommitment of over $112 million, the seven oil companies had
\nagreed to provide education aid totaling $205,000.<\/p>\n
He said the investors must pay Pertamina a total of $1 million
\nin information fees and bonuses.<\/p>\n
The companies, he added, had also agreed to pay Pertamina a
\ntotal of $405.000 in fees for its equipment and services.<\/p>\n
Meanwhile, Kufpec said it was committed to spending $29
\nmillion in exploration activities in the next six years.<\/p>\n
It said in a statement that it, along with its partners, it
\nhad invested some $109 million in oil and gas exploration
\nactivities in the eastern part of Indonesia up to 1999. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-awards-seven-oil-and-gas-contracts-1447893297",
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"sponsor": "Okusi Associates",
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