UPDATE: Indonesia Awards 5 New Oil And Gas Blocks, 4 CBM Blocks

Indonesia Friday awarded five new oil and gas blocks and four coal-bed methane blocks to investors, as the government seeks to boost energy supply.

Coal-rich Indonesia is seeking to develop unconventional gas to help reduce reliance on oil-based fuels, and is also striving to revive flagging investment in its oil and gas sector.

Director General of Oil & Gas Evita Legowo said that the government awarded the Gurita oil and gas block to Natuna Ventures B.V., South Betung to Techwin Energy Ltd., South Sumatra to Cooper Energy Ltd. (COE.AU), Marquisa to PT Schintar and Sembilang to PT Mandiri Panca Usaha.

The government also announced the winners of a tender to extract gas from coal beds in Kalimantan and Sumatra, Legowo said.

She said that the Kapuas block was awarded to a joint venture between BP PLC (BP) and PT Transasia Resources, Kutai Timur to a joint venture between Total SA (TOT) and Senyiur CBM Inc., Kutai Barat to PT Sugico Graha and Sijunjung to a consortium formed by PT Tambang Batubara Bukit Asam (PTBA.JK) and PT Lion Global Energi.

Legowo said that the total investment commitment for the oil and gas blocks during the three-year exploration period is $26.4 million, while the investment for the CBM blocks is $29.6 million.

Indonesia has one of the largest CBM reserves in the world, with a potential 453 trillion cubic feet.

-By Deden Sudrajat; contributing to Dow Jones Newswires; 62-21 39831277; [e-mail]