Hess is committed to invest $26 million in the South Sesulu block off Kalimantan during the first three year.
ExxonMobil and Hess were among the winners of 11 new oil and gas blocks announced by the Energy and Mineral Resources Ministry last week, reported.
The government of Indonesia expects to draw in total investment of $189 million into these 11 blocks, the ministry’s director general for oil and gas Evita H. Legowo said.
Legowo said the investment for the first three years exploration would be for geological and geophysical studies, seismic surveys and drilling of exploration wells.
The 11 blocks were offered under a so-called direct offer mechanism in which oil and gas companies may propose to the government to carry out a joint study in blocks which they are interested in. During any subsequent tender process, these companies will get the first priority to expand the blocks.
The 11 blocks were offered in December 2008. The government initially offered 15 blocks. One of the blocks did not attract any investors and the other three blocks attracted some oil and gas companies, but none of them met the government’s technical criteria.
The contracts are planned to be officially signed on May 5, 2009, during the opening of the 33rd annual conference and exhibition of the Indonesian Petroleum Association.
During the event, the government will launch a tender for 24 new oil and gas blocks.
