Indonesia seeks bids on 10 oil, gas blocks

July 6, 2004
After a year's delay, Indonesia is requesting bids for exploration and development of 10 oil and gas blocks and offering better production-sharing splits and incentives. Tender data is available through Sept. 30, and bid winners will be announced in October, reported the Jakarta Post.

By OGJ editors

HOUSTON, July 5 -- After a year's delay, Indonesia is requesting bids for exploration and development of 10 oil and gas blocks and offering better production-sharing splits and incentives. Tender data is available through Sept. 30, and bid winners will be announced in October, reported the Jakarta Post.

Acreages offered are the Lhokseumawe block in Aceh province, Ujung Kulon in Banten, East Java's Northeast Madura III, IV, and V blocks, East Nusa Tenggara Rote I and II, Maluku's Babar and Selaru, and Manokwari in Papua province.

ExxonMobil Oil Indonesia and PT Caltex Pacific Indonesia were reported interested in Northeast Madura III, IV and V, the government said.

Indonesia is offering a higher production split of 35% for oil and 40% for natural gas for remote areas Rote I and II, Babar, Selaru and Manokwari, up from 15% from oil and 30% from gas findings. It also is offering fiscal incentives for gas development of these blocks and Lhokseumawe and Ujung Kulon blocks.

The Ministry of Finance delayed the bids to impose value-added tax on the importation of exploration equipment.

Indonesia's oil-condensate production currently is 1.07 million b/d