RI to explore energy blocks
RI to explore energy blocks
Bloomberg, Jakarta
Indonesia, Southeast Asia's biggest oil producer, said
companies submitted bids to explore for oil and gas in 11 new
areas as soaring crude prices encourage suppliers to seek more
reserves.
The companies chose the areas, rather than bidding for blocks
offered by the government, said Iin Arifin Takhyan, director
general of oil and gas at the energy ministry. He said the
bidders include major international oil companies, though he
declined to be more specific.
"Investors interested in the oil and gas blocks have to submit
bidding documents by Sept. 30," Iin said. "If after
advertisement, (we receive) no new applications from other
companies, we will award them to those who already applied."
Crude oil futures last month soared to a record high in New
York as demand rose in China and on concern about threats to
exports from Iraq and Russia. Increased oil exploration may help
Indonesia find new supplies and boost falling production.
Oil companies applied to explore offshore in the Bulungan, the
Nunukan, and the East Ambalat blocks off East Kalimantan, the
Seruai block off Aceh, the Northwest Natuna block and the East
Sepanjang block in East Java.
The five onshore areas are Sei Nangka Senipah in East
Kalimantan, the Barito block in Central Kalimantan, and the Air
Komering, Belida and Pandan blocks in South Sumatra province.
The applications are separate from the 10 new areas offered by
the government in its normal biding round.
The Indonesian government said last month it had received 12
bids for the 10 areas. Exxon Mobil Corp., Total SA, PetroChina
Co., ChevronTexaco Corp. and Malaysia's Petroliam Nasional Bhd.
are among oil companies that submitted bids.
Indonesia is struggling to find reserves to replace aging
fields and increase flagging production. Investment in drilling
for oil and gas, which account for almost a quarter of
Indonesia's exports, fell by more than half last year.
Oil and gas production has fallen by more than 6 percent a
year for the past five years, according to industry regulator
BPMigas. The government signed 16 new oil and gas production
contracts last year.