Indonesia Friday said it has awarded three oil and gas blocks to the local units of France's Total, Italy's Eni and Pan Orient Energy Holdings for a total of $145.2 million.
The government will receive a total investment commitment of $113.7 million as well as a $31.5 million signature bonus, oil and gas director general at the Energy and Mines Ministry Evita Legowo said.
Total has been awarded the SW Birds Head block in offshore and onshore West Papua. The company is committed to spend $14.5 million during a three year exploration period to carry out geology and geophysics studies, 2D seismic and 3D seismic as well as drill one well. It will also commit to a $5 million signature bonus, Legowo said at a conference.
Eni has won the Arguni I block in offshore and onshore West Papua.
It will spend $55 million to drill 2 exploration wells, $30 million to carry out 2D and 3D seismic and $1.5 million to carry out geology and geophysics studies.
The company will also commit to spend $25 million for a signature bonus, Legowo said.
Meanwhile Pan Orient Energy Holdings has been awarded East Jabung block in offshore and onshore Riau, Jambi and South Sumatra areas.
The company is committed to a $1.5 million signature bonus. It is also committed to spend $6.225 million on geology and geophysics studies, 2D seismic and 3D seismic as well as drill 2 exploration wells, according to Legowo.
BIDDING MECHANISM
Indonesia will also offer 20 oil and gas blocks in July or October depending on the bidding mechanism used for the various blocks.
The rounds comprise nine regular blocks and 11 direct offer blocks.
The regular blocks are scheduled for an October bid and the direct offer blocks for July.
Under the regular bidding mechanism, the government can offer blocks and interested companies can submit proposals.
Under the direct offer mechanism, any company interested in a certain block not offered under the regular bidding mechanism, may express its interest to the government. The government then offers other investors the chance to better the initial company's bid.
If a block draws no other bidder or the other bidder's offer is less favorable, then the company would automatically get the block.
The regular blocks on offer will include Bulu Rembang block in offshore east Java, the offshore Timor Sea I and II blocks in East Nusa Tenggara, Halmahera I, II and III blocks in offshore north Maluku, West Aru I and II blocks in offshore Maluku and Arafura Sea II in offshore Maluku.
The bid submission is October 7, Legowo said.
The 11 blocks offered through direct offer are Ranau block in onshore Sumatra, Northeast Madura in offshore east Java, West Tanjung block in onshore central Kalimantan, Belayan block in onshore east Kalimantan, East Simenggaris block in offshore east Kalimantan, North Ganal offshore Makassar Strait, Babar Selaru in offshore Maluku, Obi in offshore north Maluku, North Semai in offshore west Papua, West Berau in offshore west Papua and Semai IV in offshore west Papua.
The bid submission is July 25.
Indonesia is making concerted efforts to ramp up exploration and development activity in the country as it has seen its crude output fall because of natural decline at ageing fields.
The country had pull out of its OPEC membership in 2008, as it is no longer a net oil exporter, but has been a net oil importer in recent years.
Indonesia missed its 2010 crude and condensate production of 965,000 b/d by pumping only 947,000 b/d throughout last year.
It plans to produce 970,000 b/d in 2011, but may revise that down to 945,000 b/d, Energy and Mines Minister Darwin Zahedy Saleh said in March.
