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Equator Energy has been awarded the exploration rights for the East Sokang oil and gas block in the Riau Islands, the Energy and Mineral Resources Ministry said on Wednesday, indicating it is making progress is the issuing of resources tenders.

The oil and gas directorate general within the ministry also announced that four different companies had won the exploration contracts for four new coal-bed methane blocks spread throughout the archipelago.

The awarding of the East Sokang contract to Equator, which has already pledged to invest $29.4 million to explore the Natura district block, follows a tender process that began in March. No winners have been announced yet for the other four blocks offered at the time: West Pelikan in Riau Islands; South Sampang in East Java; Southeast Mangkalihat in East Kalimantan; and East Aru in Maluku.

As for the coal-bed methane blocks, Dart Energy International won the exploration rights for Bontang Bengalon in East Kalimantan, Ephindo Sekayu 2 won the Sekayu I block in South Sumatra, Bumi Parahyangan Energi won Central Kalimantan’s Belawa block and CBM Asia Dev. Corp. won Central Kalimantan’s Kuala Kapas I block.


The four companies planned to invest a combined $14.2 million. The contract winners have been given three years to complete exploration.

The government in July awarded exploration rights for nine oil and gas blocks via direct bidding. From the contracts, the government secured $136.41 million of investment commitments.

Indonesia needs more investment in the oil and gas sector to boost oil production, which has dwindled in recent years. Aging fields and a lack of investment have led to the country missing its oil production target.

Source: Jakarta