RI to tender Makassar blocks

RI to tender Makassar blocks

SINGAPORE (Dow Jones): Indonesia intends to announce terms and
conditions for six deepwater oil and gas exploration blocks by
early January, a source at Indonesia's Ministry of Mines and
Energy told Dow Jones Newswires Wednesday.

The blocks are located in the Makassar Strait, off Kalimantan,
in water depths of over 1,000 meters, the official said.

The contractor's share of production from the blocks may reach
35 percent, under Indonesia's new incentive system, he said.

The Ministry has already conducted two- and three-dimensional
seismic surveys of the blocks, the official said, adding that the
blocks are near existing oil and gas fields operated by Unocal
Corp. and Totalfina Elf S.A.'s subsidiary Total Indonesie.

Any gas production from the fields could also feed a liquefied
natural gas plant at Bontang, in East Kalimantan, he said.

Both Total and Unocal have expressed interest in the blocks,
he said.

State-owned oil and gas company Pertamina will invite bids for
the blocks. The bidding period will remain open for about six
months, he said.