Oil/Gas Contractors Pledge US$146 Million Investment

Jakarta, July 20 (ANTARA) - Ten new oil and gas cooperation contractors have pledged to invest US$146 million for the next three years, director general for oil and gas Evita Legowo said. She said at the signing of the cooperation contract agreement with the contractors here on Friday that the contractors had also submitted a signing bonus of US$13.2 million. "Today, we signed another cooperation contracts for 10 new blocks," she said. The signing of the agreement that was witnessed by minister of energy Jero Wacik was carried out by the chief of the Oil and Gas Upstream Business Executive Agency (BP Migas), R Priyono, representing the government and chiefs of the contractor companies. Evita said the fixed investment commitment consisted of US$14.3 million for a geological and geophysical study, US$50,000 for a seismic survey, US$23.4 million for a 2,150 km long 2D seismic study, US$6 million for a 150 square kilometer 3D seismic study and US$102.63 million for drilling seven wells. The ten blocks meanwhile include one offered in a second stage regular auction in 2011 namely Kuningan with PT Equaotr Energi Kuningan as the contractor. The fixed investment commitment for the first three years for the block is worth US$9.95 million with a signing bonus of US$1 million, she said. She said the nine other blocks were the result of the first stage auction done through direct bids in 2012 including the Bohorok block with Bukit Energy Bohorok Pte.Ltd-NZOG, Bohorok Pty Ltd-Surya Buana Lestarijaya Bohorok Inc. as its contractor. The fixed investment commitment for the first three years for the block is US$2.85 million with a signing bonus of US$1 million. The other block is the Mahato Block with Textal Mahato EP Ltd-Bukit Energy Central Sumatra (Mahato) Pte Ltd-Central Sumatra Energy Mahato Ltd. as its contractor with a fixed investment commitment of US$8.6 million and a signing bonus of US$1 million. Other blocks are South Lirik, Bukit Batu, Palangkaraya, Babai, East Sepinggan, Aru and Udan Emas. The contractor for South Lirik is Indrillco South Lirik Ltd-Texcal South Lirik Ltd-Central Sumatra Energy South Lirik Ltd with a fixed investment commitment of US$8.6 million for the first three yeas and a signing bonus of US$1 million. PT Geo Bukit Batu meanwhile is the contractor of Bukit Batu Block with a fixed investment commitment of US$22.3 million and a signing bonus of US$1.2 million and PT Petcon Borneo Ltd. is the contractor for Palangkaraya with a fixed investment commitment of US$2.9 million with a signing bonus of US$1 million. Other contractors are KE Babai Tanjung Ltd. for Babai Block, Eni East Sepinggan Ltd. for East Sepinggan,Niko Resources (Aru) Ltd-StatOil Indonesia Aru AS for Aru and KrisEnergy (Udan Emas) BV for Udan Emas Block. The fixed investment commitment of KE Babai Tanjung Ltd. is US$4.2 million with a signing bonus of US$1 million while that of Eni East Sepinggan is US$4.2 million with a signing bonus of US$1 million. The fixed investment commitment of Niko Resources Ltd-StatOil Indonesia Aru AS is US$800,000 with a signing bonus of US$1 million while that of KrisEnergy BV is US$5.6 million with a signing bonus of US$1 million.