Santos, ConocoPhillips bid for new oil and gas blocks<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Twenty-three companies, including major global players like
\nAustralia's Santos and U.S. companies ConocoPhillips and Anadarko
\nPetroleum Company, have submitted bids for 11 oil and gas blocks
\ncurrently on offer, an official says.<\/p>\n
Ministry of Energy and Mineral Resources' Director of
\nExploration and Production Novian M. Thaib said Thailand's PTT
\nExploration & Production Pcl, the country's second-largest gas
\nproducer, and Indonesia's second biggest publicly listed oil and
\ngas company PT Energi Mega Persada, are also bidding for the
\nblocks.<\/p>\n
\"We will evaluate (the bids) and announce the winners early
\nnext month,\" said Novian.<\/p>\n
The government put forth 13 blocks through direct offering --
\nmeaning that the areas were proposed by investors -- in early
\nJune. Three acreages attracted several bids, namely Citarum in
\nWest Java, West Kampar in Riau and Bungamas in South Sumatra,
\nsaid Novian.<\/p>\n
Two other blocks, the North East Madura V in East Java and
\nAmborip V in the Arafura Sea, failed to get any bids, despite
\nincentives being offered, such as a bigger share of 35 percent
\nfor contractors proposed for the high-risk deep sea area.<\/p>\n
Aside from the 13 blocks, the government has put on offer 14
\nother oil and gas blocks through regular tender in the first
\nround of offering. The second round, with another 28 blocks on
\nsale, is expected to take place in October.<\/p>\n
To attract more investors, the government has scraped value-
\nadded tax and import duty on all capital goods to be used during
\nexploration and exploitation periods.<\/p>\n
It has also lowered its share of the oil output to between 65
\npercent and 80 percent from around 85 percent applied in previous
\ncontracts, giving a bigger piece of the pie to the winning
\nbidders.<\/p>\n
Indonesia is in dire need of new oil findings amid steadily
\ndeclining output due to aging fields. The country's crude oil and
\ncondensate production currently stands at about 1.056 million
\nbarrels per day (bpd), lower than the target of 1.125 million bpd
\nassumed by the government.<\/p>\n
Rocketing global oil prices and rising domestic demand are
\nexpected to nearly double the cost of the fuel subsidy to an
\nestimated Rp 138 trillion ($14 billion) from the Rp 76.5 trillion
\nallocated in the state budget.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/santos-conocophillips-bid-for-new-oil-and-gas-blocks-1447893297",
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