Bidding for Timor oil opens

Bidding for Timor oil opens

JAKARTA (JP): Indonesia and Australia are inviting investors
to bid for production-sharing contracts for oil exploration and
production in three of the 14 prospective areas at the Timor Gap,
an offshore area disputed by the two countries.

The state oil company Pertamina said here yesterday that the
Joint Authority for Timor Gap Zone of Cooperation, an agency
assigned by the two nations to supervise the gap, has opened the
bidding opportunity to oil and gas investors since Dec. 12.

It said companies wanting to apply for contracts should lodge
sealed applications to the Joint Authority at its headquarters in
Jakarta or its technical directorate in Darwin.

Since the Timor Gap was introduced in 1991, 11 contracts for
oil and gas exploration have been awarded to companies with a
total investment commitment of US$362.32 million within six years
of exploration, seismic surveys and the drilling of 45 wells.

Under the Indonesian-Australian agreement in 1989, the gap is
divided into three areas -- Zone A which is jointly controlled by
the two countries, Zone B controlled by Australia and Zone C
controlled by Indonesia. (fhp)