EXXON MOBIL, HESS AND MARATHON AMONG WINNERS OF 11 OIL AND

UNCLAS JAKARTA 000797 SENSITIVE SIPDIS DEPARTMENT FOR EAP/MTS, EEB/ESC/IEC/ENR COMMERCE FOR 4430 NADJMI AND 6930/HUEPER ENERGY FOR PI-32/CUTLER AND GILLESPIE DEPARTMENT PASS EXIM BANK USTR WEISEL, EHLERS E.O. 12958: N/A TAGS: ENRG ECON ETRD EINV ID SUBJECT: EXXON MOBIL, HESS AND MARATHON AMONG WINNERS OF 11 OIL AND GAS BLOCKS OFFERED FOR EXPLORATION ¶1. (U) Indonesia's Ministry of Energy and Mineral Resources announced on April 29 that it had awarded eleven of fifteen new oil and gas blocks offered for exploration in the Second Phase of its 2008 Direct Offer Tender. Winners for the exploration contracts included Hess, Marathon and Esso Exploration (ExxonMobil). The government and winning bidders signed these contracts on May 5 at the opening of the 33rd Annual Indonesian Petroleum Association Conference in Jakarta. ¶2. (U) Hess (Indonesia South Sesulu) Ltd. won the South Sesulu block, offshore East Kalimantan. Marathon Indonesia New Venture Ltd., as part of a consortium with Indonesia Kumawa Energy Ltd. and Komodo Energy LLC, won the Kumawa block, offshore West Papua. Esso Exploration International Ltd (Exxon Mobil),as part of a consortium with Biak Petroleum LLC, won the Cendrawasih block, offshore Cendrawasih Bay, West Papua. The budget commitments for exploration of these three blocks over the next three years are $27.6 million, $27.3 million and $45.0 million respectively. Other winning firms included Australian Worldwide Exploration Ltd., Canada's Niko Resources and Singapore's Orchard Energy. ¶3. (SBU) Indonesia's Direct Offer Tender program is part of its effort to streamline the tendering process to build up production more rapidly. Indonesia's oil output has declined most years this decade, with relatively fewer blocks tendered and awarded, despite the Direct Offer Tender program. HUME