Berita

Indonesia’s geological and investment climate still attracts upstream oil and gas investors. This is shown during oil and gas block tender carried out between 2007-2008 where dozens of investors, both foreign and domestic, are competing to win the contract. Most of the oil and gas contracts are located offshore.

“The large number of tender attendants shows that Indonesia’s investment climate is still attractive for uptream oil and gas investors in the midst of global economic downturn” explains the Minister of Energy and Mineral Reources, Purnomo Yusgiantoro during the announcement of winners of 9 oil and gas blocks tendered during January – June 2008, on Friday (31/10).

Attendees during the event include delegations from upstream oil and gas compamies, DPR RI Commission VII member Effendi Simbolon, representatives from supporting companies, and stakeholders. The tender winner is anncounced bythe Director General of Oil and Gas, Evita Herawati Legowo.

According to Purnomo Yusgiantoro, this tender announcement is part of Indonesia’s effort to increase oil and gas production, with several other tenders to be announced. Prior to this announcement, there have been an agreement on oil and gas exploration, while the signing of the current tender winners is scheduled for November 13 2008.

The Minister of Oil and Gas explains that the government has been careful in determining the oil and gas block tender winner. Apart from evaluating the company’s finance, technical and performance aspects, the evaluating team also includes academics and other related authorities. This evaluation has resulted in the appointment of 9 out of 21 regular oil and gas working area to several domestic and foreign consortiums.

According to Evita Legowo, the government has procured a signing bonus and investment commitment for the first three years of exploration. The signing bonus which will be directly channeled to state funds amounts to USD 69,500,000, while the total investment commitment for the first three years of exploration equals to USD 465,096,250, consisting of G&G, 2D seismic survey, 2D repro, 3D seismic, and 16 exploration wells.