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Investment in oil and gas to increase US$68.43 mln

Senin, 1 Agustus 2011 19:56 WIB | 2.345 Views
Investment in oil and gas to increase US$68.43 mln
Evita Legowo. (FOTO.ANTARA)
Jakarta (ANTARA News) - Investment in oil and gas explorations in Indonesia will increase by US$68.43 million in the next three years, the director general of oil/gas of the ministry energy and mineral resources ministry, Evita Legowo, said.

"The investment will come from the signing of seven cooperation contracts for coal bed methane (CBM) blocks and one for oil/gas block," she said at the signing of the contracts for the eight blocks here on Monday.

At the signing event was also attended by the minister of energy and mineral resources, Darwin Saleh, and BP Migas chief R Priyono the government also received a signing bonus of US$13.26 million.

Evita said the investment for the seven CBM blocks in the first three years would reach US$48.93 million and a signing bonus of US$8.26 million.

The commitment in the first three years for one oil/gas block reached US$19.5 million with a signing bonus of US$5 million.

The seven cooperation contracts for the seven blocks consist of two resulting from the regular tender in 2010-2011 namely Melak Mendung I in East Kalimantan with PT Ephindo Mega Methana Inc. as its winning contractor and Melak Mendung III in East Kalimantan won by the consortium of Deep Industries Limited-Monnet Ispat&Energy Ltd.

The other five contracts came from the 2011 direct bidding namely Belida in South Sumatra with the consortium of PT Sele Raya Resources and PT Andalas Metana Energy as its contractor and Lematang in South Sumatra with the consortium of PT Medco CBM Lematang and PT Methanindo Energi Resources and PT Saka Energi Indonesia as its contractor.

The other three blocks are Kutai II in East Kalimantan won by the consortium of PT Ephindo Kutai North Inc. and PT Resources Alam Energi, Suban I in South Sumatra won by PT Pertamina Hulu Energi Metana Suban I and PT Suban Energi, and Suban II in South Sumatra won by the consortium of PT Pertamina Hulu Energi Metana Suban II and PT Suban Methan Gas.

The terms for the seven CBM block contracts are 55:45 production sharing after tax between the government and the contractor with the first tranche petroleum of 10 percent and cost recovery of 100 percent.

The contract for one oil/gas block meanwhile was the result of the second phase of regular bidding in 2010 namely for the Southwest Bird`s Head in Papua with PT Total E & P Indonesia West Papua as the winning contractor.

(SYS/H-YH/A014)