First Indonesian Petroleum Bidding Round 2008 Awards

Indonesia’s Directorate General of Oil and Gas (MIGAS www.migas-indonesia.com) launched the First Indonesia Petroleum Bidding Round 2008 on 29 May 2008. Under this round, 25 blocks were offered under the Direct Proposal Tender with the access to the bid documents open from 17 June 2008 till 29 Jul 2008. The bid deadline closed on 31 July 2008. Winning bids were announced on 17 October 2008 as follows:-

Map: Blocks awarded under the First Indonesia Petroleum Bidding Round 2008 (red shading).   Source: PetroView®

There were three blocks offered in this round that failed to attract bids. These blocks are North Bali II in the East Java basin, North Masela in the Bonaparte basin and West Papua II in the Bintuni basin. As reported by MIGAS, the investment commitments for this round include 27 exploration wells costing USD 241.6 million, geology and geophysical studies worth USD 32.4 million, 22,090 kilometres of 2D seismic worth USD 52.85 million, 650 kilometres of 2D seismic reprocessing worth USD 0.35 million and 300 square kilometres of 3D seismic worth USD 3 million.

The growing population and economic activity in Indonesia has led to a rise in oil consumption.  The country is now a net oil importer, as it failed to bring new production onstream amid the aging wells. The Indonesian regulatory authorities are stepping up licence awards and bidding activities as part of a wider effort to stem the country’s decline in oil and gas production. In line with this, another bidding round (Cycle II 2008) was announced on 17 October 2008, immediately after the announcement of the winners for the First Indonesia Petroleum Bidding Round 2008. The blocks offered are as follows:-

Access to the bid documents will be provided on 10 November 2008. The bid deadline for direct proposal tender is 5 January 2009, while for regular tender it is 9 March 2009.

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