Indonesia awarded five oil and gas blocks as it seeks energy security

Indonesia has awarded five oil blocks and gas blocks to various companies, the energy ministry announced on Wednesday. The country is trying to increase its oil reserves and energy security.

In the next few years, the government will offer more than 60 oil and natural gas blocks in an effort to reverse the decade-long decline of production.

In an online broadcast of Wednesday's awards, Tri Winarno said that the government hoped these auction winners would be able contribute to Indonesian energy security in the future.

Indonesia awarded the Gaea II and Gaea I blocks in West Papua, to a consortium of eight companies including Enquest Petroleum Production Malaysia Ltd., BP Exploration Indonesia Ltd., CNOOC South East Asia Ltd.

Tri reported that Gaea II's estimated resources are 8.5 billion barrels or 35,1 trillion cubic feet (tcf) of gas. Gaea I has 9.6 billion oil barrels or 71.8 trillion cubic feet of gas.

The Binaiya Block in Maluku has a potential of 6.7 billion barrels and 15 tcf gas. It was awarded to PT Pertamina Hulu Energy and Malaysian Petronas' PC North Mandura II Ltd, as well as Korea's SK Earthon Co Ltd.

PC North Madura II Ltd, SK Earthon and Japan's INPEX Corporation were also awarded the Sepang Block offshore East Java.

Armada Etan Ltd. was awarded the Kojo Block in Makassar Strait.

Indonesia, once a major oil producer and member of the Organization of Petroleum Exporting Countries (OPEC), has become increasingly dependent on imported energy.

As part of the negotiations over tariffs, it has offered to increase energy imported from the United States. (Reporting and editing by Barbara Lewis; Fransiska Naangoy)

(source: Reuters)