ESDM - The Signing of 11 Oil and Gas Cooperation Contracts

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA

PRESS RELEASE
NUMBER: 74/HUMAS KESDM /2011
Date: November 21st, 2011

THE SIGNING OF 11 COOPERATION CONTRACTS
FOR OIL AND GAS UPSTREAM INVESTMENT
AND THE ANNOUNCEMENT OF REGULAR BID WINNER STAGE I 2011
AND ALSO THE SIGNING OF HoA FOR SUBAN FIELD UNITIZATION

The government, in this matter, is Ministry of Energy and Mineral Resources (MEMR) tries hard to increase national oil and gas (migas) production. Related to the matter, today, Monday November 21st, 2011 in auditorium of Ministry of EMR, Minister of EMR, Jero Wacik witnessed and agreed the signing of 11 Cooperation Contracts for Oil and Gas Working Area between BPMigas and contractor. In the same chance, the government also announced the regular bid winner for Migas Working Area Stage I 2011. Besides, to hasten the production of migas, Head of Agreement for Suban Field Unitization was also signed.

A.    2 new KKS as the result of Regular Bid Stage II 2010 and 9 new KKS as the result of Direct Bid Auction Stage I 2011 are below:

NO   MIGAS WORKING AREAS        CONTRACTORS
1   ARGUNI I                ENI ARGUNI I LIMITED
2   EAST JABUNG                         PAN ORIENT ENERGY EAST JABUNG PTY LTD
3   RANAU      PRABU ENERGY PTY LTD
4   NORTHEAST MADURA              TECHWIN ENERGY NORTHEAST MADURA LTD
5   WEST TANJUNG       PT MRI ENERGY
6   BELAYAN                              PT GERALDO ENERGY
7   EAST SIMENGGARIS   SONLAW UNITED CORPORATION
8   NORTH GANAL                    KONSORSIUM NIKO RESOURCES (NORTH GANAL) LIMITED – NORTH GANAL ENERGY LTD – STATOIL INDONESIA NORTH GANAL AS – ENI NORTH GANAL LIMITED – GDF SUEZ NEW PROJECT INDONESIA B.V
9   BABAR SELARU   INPEX BANDA SEA LIMITED
10   OBI                                   KONSORSIUM NIKO RESOURCES (OBI) LIMITED – STATOIL INDONESIA OBI AS – ZIMOREX N.V.
11   SEMAI IV                            MURPHY SEMAI IV LTD

Exploration definite commitment for 11 (eleven) bid winners of Exploration Working Areas for 3 (three) years is in form of G&G study for US$ 8, 625 million, 2D seismic survey for 3.850 km, 3D seismic survey for 1.730 km2, and 9 exploration wells.

The total investment of exploration commitment is US$ 201, 3 million; while the signature bonus will be accepted directly by the government is US$ 36, 08 million.

B.    The Regular Bid Winner Stage I 2011 is below:

NO    WORKING AREAS            BID WINNER
1   OFFSHORE TIMOR SEA I   HESS (INDONESIA – V) LIMITED
2   HALMAHERA II         KONSORSIUM NIKO RESOURCES (OVERSEAS I) LIMITED – STATOIL ASA
3   WEST ARU I                      BP EXPLORATION INDONESIA LIMITED
4   WEST ARU II                     BP EXPLORATION INDONESIA LIMITED

Exploration definite commitment for 4 (four) bid winners of Exploration Working Areas for 3 (three) years exploration is in form of G&G study for US$ 3, 3 million, 2D seismic survey for 7.500 km, 3D seismic survey for 5.000 km2.

The total investment of exploration commitment is US$ 64, 5 million; while the signature bonus will be directly accepted by the government is US$ 19, 35 million.

C.   The signing of HoA for Suban Field Unitization:

Suban Field is a gas field has been produced since December 2002 by ConocoPhillips (Grisik) Ltd. and proven to Suban Working Area operated by PT Pertamina EP, so it needs to unitize.

The signing of Head of Agreement (HoA) between PT Pertamina and ConocoPhillips (Grisik) Ltd together with Talisman (Corridor) Ltd and PT Pertamina Hulu Energi Corridor means a lot, so it could be immediately followed up to be operated in unitization scheme and also is the improvement of national enterprises’ role in migas sectors. By the working of this unitization project, the produced production of Suban Field will give additional contribution towards state revenue equivalent to the increase of natural gas production of PT Pertamina EP for 13.000 BOEPD.

By the signing of KKS today, then in 2011 there have been 16 KKS of New Migas Working Areas for exploration.

The Head of Legal and Public Relations Bureau,

Susyanto

Siaran Pers

The Signing of 11 Oil and Gas Cooperation Contracts

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