Indonesia unlocks 22 new blocks

Indonesia has awarded oil and gas exploration rights on 22 blocks to energy companies including US supermajors Chevron and ConcoPhillips, a senior mines and energy ministry official said.

Indonesia has turned into a net importer of crude in recent years as it has failed to tap new fields fast enough to replace declining production from ageing wells. It has been offering new exploration rights and financial incentives for exploration in a bid to stem its steady production decline. Evita Legowo, a director general at the energy ministry, said the government has awarded offshore and onshore West Papua 1 and West Papua 3 oil and gas blocks to Chevron Indonesia. She said Indonesia has also awarded exploration rights to ConcoPhillips for the offshore Arafura Sea Block in the Mollucas. "The prospects for findings hydrocarbons are still good in Indonesia, but we have to see the exploration acitivities first before determine the findings," Legowo told reporters. She said total investment for these blocks could reach around $308 million for the first three years. Indonesia also awarded oil and gas exploration rights to offshore North Sumbawa 2 Block, in Nusatenggara, to Husky Energy. A consortium of Marathon Indonesia, a unit of US independent Marathon Oil and Kaizan Oil were awarded exploration rights in offshore and onshore Bone Bay block in Sulawesi.
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