Indonesia to offer 27 blocks in March

Offshore staff

(Asia-Pacific) - The Indonesian government is expected to invite bids next month for 27 oil and gas blocks, 17 of which would be negotiated on a direct offer scheme and the rest through regular tenders, says the Energy Ministry's director general of oil and gas, Iin Arifin Takhyan.

Five of the direct-offer concessions had failed to attract bids previously, he says, adding that most of the blocks were onshore.

All agreed deals would be under a production sharing contract.

With crude oil production dropping to 1.061 MMb/d in 2005 from 1.094 MMb/d in 2004, Indonesia has been promoting exploration both onshore and offshore, especially with new terms and conditions under the directly negotiated scheme as a mode to convince investment in exploration in untested regions.

02/22/06