Indonesia Awards Six Oil and Gas Blocks, Opens Eight More for Tender

Indonesia has awarded six oil and gas working areas and put another eight blocks up for tender, the energy ministry said, in a move that advances the country's upstream licensing programme.

The awarded blocks carry total estimated resources of 8.28 billion barrels of oil and 2.3 billion standard cubic feet of gas.

Italy's ENI secured the Sapukala working area, which is estimated to hold 2.31 billion standard cubic feet of gas. China's Sinopec was awarded Bengara II, a block estimated to contain 1.05 billion barrels of oil.

The Natuna D-Alpha working area, with estimated oil resources of 2.86 billion barrels, went to Nations Petroleum, a unit of the Arsari Group owned by Hashim Djojohadikusumo, the brother of President Prabowo Subianto.

Natuna D-Alpha has long figured in Indonesia's plans. It is considered one of the world's largest untapped natural gas sources, with an estimated volume of 230 trillion cubic feet, though its gas has a high carbon dioxide content that has complicated development.

Timur Hijau Investama was awarded the Puri and Pesut Mahakam working areas, while Hong Kong-based Cinda Energy took the Rupat block.

The ministry also opened eight additional oil and gas blocks under a second tender round that began on Thursday.