RI to offer 11 oil, gas blocks for bidding

RI to offer 11 oil, gas blocks for bidding

Dow Jones, Jakarta

The government will offer 11 oil and gas blocks for open bidding Saturday by private oil and gas companies, a government official said Monday.

Iin Arifin Takhyan, oil and gas director general of the Energy and Mineral Resources Ministry, said he will launch the bidding process in Bali during a gathering of oil and gas companies on the resort island this weekend.

He said the 11 blocks comprise the offshore Tarakan block in South Kalimantan, the offshore South Madura block in East Java, the offshore Bulu block in northeast Java, the offshore Rembang block north of Central Java, the offshore Madura I and II blocks in East Java, the offshore North Bali I and II blocks, the onshore Merangin I and II blocks in South Sumatra, and the offshore East Kangean block in East Java.

The government will sign production sharing contracts with the selected companies.

Indonesia introduced a new oil and gas law in November 2001 to attract more foreign investment in the country's oil and gas sector.

Under the law, the government lifted the decades-long monopoly enjoyed by state-owned oil and gas firm Pertamina.

Indonesia is the only Southeast Asian member of the Organization of Petroleum Exporting Countries, or OPEC.

The government has forecast this year's average monthly crude oil production at 1.27 million barrels a day.