Indonesia plans to require conventional terms in production sharing contracts (PSCs) to be let about year-end on two large tracts in the Celebes Sea.
Rather than allow special incentives on the acreage, state oil company Pertamina will retain 85% of commercial oil production and 70% of commercial gas production, leaving the balance for production sharing contractors.
On offer are 4,982 sq km Sebawang Block I and 4,995 sq km Sebawang Block II off northeastern East Kalimantan. Pertamina announced the tenders in July (OGJ, Aug. 1, p- 26).
An area around Bunyu Island in Sebawang I is being withheld from the bidding round because of existing production.
By classifying the Sebawang acreage as conventional, Pertamina is denying potential foreign investors in the tracts a package of incentives disclosed late in 1993 for frontier prospects. The incentives allow contractors larger shares of equity hydrocarbons from commercial fields and higher prices for the first batch of petroleum withheld by Pertamina before contractors recover operating costs.
Companies that want to assess the Sebawang acreage have until Oct. 21 to buy packages of technical data from the resources and ventures development subdivision of Pertamina's exploration and production directorate in Jakarta. There is a $5,000 fee to gain access to the data and a $5,000-10,000 fee to buy the data in preparation for bidding.
Data packets include results of seismic surveys and other geophysical data, well data, reservoir information, and reserve estimates.
Bids for the Sebawang blocks are to be submitted, along with statements of technical and financial capabilities, by 11 a.m., Nov. 25. Pertamina will announce winning bidders in December 1994 or January 1995.
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