GOVT OFFERING FOUR OIL, GAS BLOCKS IN SE SULAWESI

Kendari, June 24 (ANTARA) - The government is offering investors development of four oil and gas field blocks in South East Sulawesi (Sultra), an oil and gas official said.

Head of Sultra's Energy and Mineral Resources Service for oil, gas, electricity and energy affairs Andi Aziz said here on Tuesday that the central and regional governments had held consultations with regard to the plan to offer the oil and gas blocks to investors.

He said that based on the law, natural resources would be offered for exploitations to a corporate body after the energy and mineral resources minister held a consultation meeting with the regional government.

"We have held consultations with the Ministry of Energy and Mineral Resources (ESDM) the results of which included a decision to offer the four oil blocks in Sultra to investors," Andi Aziz said.

The oil field blocks being offered are the Bone Bay I block in Kolaka and North Kolaka districts, Boney Bay II in Kabaena Island of Bombana district, Bone Bay IV in Buton district and Menui block in the border area between Sultra and Central Sulawesi.

Andi Aziz said that the four blocks were predicted to have large natural oil potentials but the production capacity could only be known after explorations already carried out.

He said that no investors had yet to submit a formal application for the explorations of the potentials.

Earlier the government has also offered two oil blocks in Sultra, namely Buton I block and Buton II block. A Japanese company has secured a license to explore Buton I block, while PT Putindo Bintek has obtained the license to explore Buton II block.

Aziz predicted that the oil and gas potentials of the blocks would be known in the coming five years after the explorations had been conducted.