Eric Watkins
Senior Correspondent
LOS ANGELES, May 23 -- The Indonesian government has awarded five oil and gas blocks to five international oil companies, including Lundin Oil & Gas BV, Murphy Overseas Venture Inc., Eni Indonesia Ltd., Genting Oil & Gas Ltd., and a consortium of CNOOC Ltd., Southeast Asia Ltd., and Petronas Carigali Overseas Sdn. Bhd.
"The value of the investment in the five blocks will [total] $201.45 million for 3 years," said Luluk Sumiarso, the director general of oil and gas at the mines and energy ministry. "The government immediately received $24.4 million as signature bonus," he said.
Genting Oil & Gas won the Kasuri Block in Papua; Eni Indonesia won the West Timor Block; the consortium of Chinese CNOOC, Southeast Asia Ltd., and Malaysian Petronas Carigali Overseas was awarded the Southeast Palung Aru Block; Lundin Oil was awarded the Rangkas Block; and Murphy Overseas Ventures won the South Barito Block.
Sumiarso said that under a profit-sharing formula, the five companies will receive 20-35% of the profit from operating the blocks, while state-owned oil company PT Pertamina has rights to a maximum 15% of shares in each block due to an agreement made with the concession holders.
The blocks awarded are part of the 2007-08 auctions. Luluk said the government will auction another 46 blocks this year, offering 25 of them on May 29 and the remaining 21 "sometime in October."
Contact Eric Watkins at [email protected].
