Eight oil and gas firms apply for Indonesian blocks

Eight oil and gas companies, including US-based ConocoPhillips, are applying for exploration and production licenses for blocks in Indonesia, a government official said.
Iin Arifin Takhyan, director general of oil and gas at the Ministry of Mines and Energy, told that the other companies include Genting Oil & Gas, a 95 %-owned unit of Malaysia's Genting, and Singapore-based Pacific East Asia Resources. He added that the eight companies had selected the blocks they were applying for.

The eight blocks are the offshore Billiton Block in the Java Sea, offshore West Natuna Block, onshore Central Kalimantan Block, offshore Salawati Block in Papua, onshore Asmat Block in Papua, offshore Halmera Block in Maluku province, onshore South Sumatra Block and offshore Bontang Block in East Kalimantan.
The government, however, will offer the blocks through an open bidding process to see whether other companies are interested before deciding to award the blocks to the eight companies, Iin said.
"If no other companies are interested in the blocks, then we will award each of the blocks to the eight companies," he added.

Indonesia last month awarded eight blocks to foreign and local investors through a competitive bidding process as part of efforts to boost the country's dwindling oil output.
Indonesia, the only Southeast Asian member of OPEC, currently produces only around 1.1 mm bpd of crude oil, below its OPEC quota of 1.317 mm bpd.