Indonesia awards five oil and gas blocks as seeks energy security
FILE PHOTO: An employee rides his bike past barrels of petroleum products at a state-owned Pertamina fuel depot in Jakarta September 9, 2014. REUTERS/Darren Whiteside/File Photo
JAKARTA : Indonesia awarded five oil and gas blocks to companies, its energy ministry said on Wednesday, as it attempts to replenish its oil and gas reserves and improve its energy security.
Over the coming years, the government plans to offer nearly 60 oil and gas blocks to try to reverse a decade-long decline in output.
"The government hopes these auction winners will be able to contribute to Indonesia's energy security ahead," Tri Winarno, senior official at the Energy and Mineral Resources Ministry said in an online broadcast on Wednesday's awards.
Indonesia awarded both the Gaea and Gaea II blocks in West Papua to a consortium comprising eight companies, including Enquest Petroleum Production Malaysia Ltd, BP Exploration Indonesia Ltd, CNOOC Southeast Asia Ltd.
Gaea has estimated resources of 9.6 billion barrels of oil or 71.8 trillion cubic feet of gas, while Gaea II has estimated resources of 8.5 billion barrels of oil or 35.1 tcf of gas, Tri said.
The government also awarded the Binaiya block in offshore Maluku, which has 6.7 billion barrels of oil and 15 tcf of gas potential, to state explorer PT Pertamina Hulu Energy, and Malaysia's Petronas unit PC North Mandura II Ltd and Korea's SK Earthon Co Ltd.
PC North Madura II Ltd and SK Earthon, together with Japan's INPEX Corporation, were also awarded the Sepang block offshore East Java.
The Kojo block in Makassar Strait was awarded to Armada Etan Ltd.
Once a significant oil producer and a member of the Organization of the Petroleum Exporting Countries, Indonesia has grown increasingly reliant on imported energy.
It has offered to increase energy imports from the United States as part of negotiations on tariffs.
