Tue, 07 Dec 2010

From: The Jakarta Post

By Rangga D. Fadillah, The Jakarta Post, Jakarta
A lack of information is stymieing government plans to auction off oil and gas fields, a senior official says.

Only three of 14 fields offered by the government this year attracted investors, Evita Herawati Legowo, the Energy and Mineral Resources Ministry’s oil and gas director general, said on Monday.

"We've conducted an internal evaluation and found that lack of data was the main reason why many potential investors backed down from their plans," she said when announcing the auction’s results at Plaza Centris in Jakarta on Monday.

The government offered 14 fields at auction: Sokang, South Sokang, Southeast Baronang, Nias, Sunda Strait II, Sunda Strait III, Sunda Strait IV, South Kangean I, South Kangean II, Southwest Makassar, North Bone, Wokam I, Wokam II and Digul.

Only three of 36 interested companies bid at auction.

Evita announced the winners of the auctions for three blocks: Sokang, South Sokang and Wokam II.

Ephindo Oil and Gas Holding was awarded the Sokang field with initial 3-year investment of $8.8 million and a US$1.2 million signing bonus for the government.

Lundin Oil and Gas B.V. and Salamander Energy (Indonesia) were awarded the South Sokang field, with a $9.3 million investment and a $1.1 million signing bonus for the government.

The Wokam II block was awarded to Murphy Overseas Ventures, with a $1.2 million signing bonus on a $9.6 million investment.