The Indonesian government has awarded nine oil and gas exploration blocks for a total $116.48 million, as part of its efforts to boost oil production, a senior official said Wednesday.
The government will receive a total investment commitment of $106.9 million from companies for developing the blocks over a three-year period, as well as $9.58 million in signature bonus, the official said.
Norway’s Statoil, Italy’s Eni, GDF Suez New Project Indonesia, Niko Resources and Baruna Nusantara Energy will develop the North Ganal block in offshore Makassar Straits. The consortium will invest $31.4 million over the first three years and pay $1 million signature bonus, oil and gas director general at the Energy and Mines Ministry Evita Legowo said.
A consortium comprising Japan’s Inpex Corporation and Jogmex was awarded the Babar Selaru block in offshore Arafura. The consortium will spend $31.5 million over the first three years and pay $1.5 million signature bonus.
The consortium of Statoil Asa, Manley NV and Niko Resources has been awarded the Obi block in offshore Halmahera. It plans to spend $1.8 million and pay another $1 million signature bonus.
Murphy Overseas Ventures has been awarded the Semai IV block in offshore West Papua. The company will spend $2.45 million in the first three years and pay $1 million signature bonus.
Local oil company Prabu Energy has been awarded the Ranau block in onshore Lampung Sumatra, and will invest $6.5 million in the first three years and pay $1 million signature bonus.
The Northeast Madura block in offshore East Java was awarded to Forbes Citra Nusantara, which will spend $8.6 million for exploration activities in the first three years and pay another $1 million signature bonus.
The government has awarded the West Tanjung block, onshore Central Kalimantan to Karya Inti Petroleum. The company will spend $3.6 million on exploration in the first three years and pay $1 million signature bonus.
Geraldo Energy has been awarded the Belayan block in onshore East Kalimantan. It will spend $9.5 million over the first three years and pay $1.05 million signature bonus.
Meanwhile, Cahaya Sumber Energi Pratama has been awarded the East Simenggaris block in onshore/offshore East Kalimantan. The company plans to spend $11.55 million during the first three years and pay $1.03 million as signature bonus.
“We have offered a total of 11 blocks. [Out of this] nine blocks were awarded, while two other blocks — the North Semai and the Berau blocks — failed to attract investors,” Legowo said.
Indonesia has seen its crude and condensate output fall over the years because of a natural decline at aging fields. The government has revised downward its 2011 crude and condensate output target by 3% to to 945,000 b/d, compared with an earlier target of 970,000 b/d.
