The Indonesian government has received a total of 38.15 million U.S. dollars new investment commitment on oil and gas exploration for the next three years, a senior official at Energy Ministry said here on Wednesday.
The new commitment was obtained as the government has been striving to boost dwindling oil production, due to aging wells and lack of fresh investment, to meet rising energy demand and contract commitment.
Director General of Oil and Gas of the ministry Evita Legowo said that the commitments were made this year as the government had auctioned six oil and gas blocks across the country.
"The six blocks were Kalyani, South Batubara, North Batubara, Kulala Pembuang, Tanjung Aru and South East Seram," Evita said at the ministry.
The six blocks comprised Kalyani onshore block in Jambi province which was won by Eurorich Group, South Baturaja onshore block in South Sumatra province won by PT Anugerah Mutiara Sentosa, North Baturaja onshore block in the province won by PT Terra Global Vestal, she said.
Kuala Pembuang onshore block in Central Kalimantan province was won by PT Mentari Abdi Pertiwi, Tanjung Aru onshore field in East Kalimantan won by consortium Serica Energy PTE, Neon Energy and Natuna Ventures, and East Seram onshore block in Maluku province won by Niko Resources, said Evita.
Indonesia, a net oil importer, has provided a huge energy subsidy on its budget which makes the country vulnerable to soaring global oil price.
The government has shifted the use of fuel oil to gas which is abundant in the country.