Indonesia starts new oil & gas tender

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indonesia oil-workerIndonesia has opened a new licensing round for 21 oil and gas exploration blocks, two of which are for unconventional gas concessions on the islands of Borneo and Sumatra. Besides two shale gas blocks, the tender includes 17 offshore blocks that are mostly in the eastern half of the archipelago, according to a release from the Energy and Mineral Resources Ministry.

The areas being offered are estimated to contain up to 3.1 billion barrels of oil and 57.6 trillion cubic feet of gas, according to Edy Hermantoro, the ministry’s director-general of oil and gas.

The first round of bidding on the blocks is scheduled to begin in mid-June. Most of the offshore blocks would require overseas investors to carry out exploration.

State oil and gas company Pertamina this week signed a 30-year contract on Indonesia’s first shale gas concession that it said may lead to $8 billion in development costs although it also said it would need to tap into the expertise of Canada’s Talisman Energy to exploit the unconventional resource.

Indonesia’s oil output has fallen to around 830,000 barrels a day, nearly half of levels seen in the 1990s. Its gas output dropped to about 8.2 billion cu ft a day last year, down about 12 per cent from 2010.

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Reading Time: 1 minute

Indonesia has opened a new licensing round for 21 oil and gas exploration blocks, two of which are for unconventional gas concessions on the islands of Borneo and Sumatra. Besides two shale gas blocks, the tender includes 17 offshore blocks that are mostly in the eastern half of the archipelago, according to a release from the Energy and Mineral Resources Ministry.

Reading Time: 1 minute

indonesia oil-workerIndonesia has opened a new licensing round for 21 oil and gas exploration blocks, two of which are for unconventional gas concessions on the islands of Borneo and Sumatra. Besides two shale gas blocks, the tender includes 17 offshore blocks that are mostly in the eastern half of the archipelago, according to a release from the Energy and Mineral Resources Ministry.

The areas being offered are estimated to contain up to 3.1 billion barrels of oil and 57.6 trillion cubic feet of gas, according to Edy Hermantoro, the ministry’s director-general of oil and gas.

The first round of bidding on the blocks is scheduled to begin in mid-June. Most of the offshore blocks would require overseas investors to carry out exploration.

State oil and gas company Pertamina this week signed a 30-year contract on Indonesia’s first shale gas concession that it said may lead to $8 billion in development costs although it also said it would need to tap into the expertise of Canada’s Talisman Energy to exploit the unconventional resource.

Indonesia’s oil output has fallen to around 830,000 barrels a day, nearly half of levels seen in the 1990s. Its gas output dropped to about 8.2 billion cu ft a day last year, down about 12 per cent from 2010.

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