VZCZCXRO7496
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHJA #0797 1261029
ZNR UUUUU ZZH
P 061029Z MAY 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 2271
INFO RUCPDOC/USDOC WASHDC 1568
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUCNASE/ASEAN MEMBER COLLECTIVE
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

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