| Embassy of Indonesia - Ottawa Canada | June 30, 2004 |
Indonesia opens tender for 10 oil, gas blocks
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The Indonesian government has officially launched the tender process for 10 oil and gas areas, offering a better revenue split and other incentives to investors, a report said Tuesday. The blocks up for tender are in Sumatra, Java, Madura, East Nusatenggara, Maluku and Papua, Ministry of Energy and Mineral Resources' Director General for Oil and Gas, Iin Arifin Takhyan, said in a Jakarta Post report. The tender of the 10 blocks, scheduled for last October, was delayed because of expected changes in taxation rules. Under the current rules, materials used in oil and gas production can be imported duty-free. Takhyan said his office was still in talks with the Ministry of Finance over the taxation issue but they will not hamper the tender process. The report said investors can obtain bidding information from July 6 and must submit documents by September 30. The winners will be announced in October. Takhyan said a number of major oil and gas companies such as US ExxonMobil Oil Indonesia and PT Caltex Pacific Indonesia had shown interest in three of the blocks on offer. "The Java area is considered the hot spot because there are more new oil and gas findings," he said. He said the government is offering a bigger revenue split of 35 percent for oil and 40 percent for gas to investors in some of the more remote areas. Investors normally get a 15 percent revenue share for oil investment and 30 percent for gas. The government has also offered other incentives for the development of some of the other blocks, Takhyan said without giving further details.
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Source : The Jakarta Post |