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)