RI to offer new oil, gas blocks later this year

RI to offer new oil, gas blocks later this year

Dow Jones, Jakarta

Indonesia will offer six oil and gas blocks to local and foreign companies through a bidding process to begin later this year, a government official said on Tuesday.

Iin Arifin Takhyan, director general of oil and gas in the Mines and Energy Ministry, said the six blocks are the offshore Northern Natuna Block, the Bengkulu Block, the Biliton Block in the Java Sea, the offshore southern Sumba Block and the onshore and offshore Kepala Burung blocks in Irian Jaya.

The successful bidder will explore and exploit oil and gas reserves in the blocks under production-sharing contracts with the government.

In February, the government offered 11 oil and gas blocks in a bidding round set to close June 30. The government is expected to announce results in July.

Indonesia is the only Southeast Asian member of the Organization of Petroleum Exporting Countries. It produces 1.27 million barrels of oil a day, but its output is expected to slide due to the lack of new exploration.