The Indonesian Petroleum Association (IPA) kicked off its 33rd annual convention and exhibition in Jakarta on Tuesday, by signing 20 contracts worth a total of US$1.37 billion.

Witnessed by President Susilo Bambang Yudhoyono, who officially opened the event, stakeholders of the oil and gas industry signed three coal bed methane (CBM) development contracts; twelve oil and gas exploration contracts; and five gas sales contracts.

For the CBM and oil and gas contracts, investment commitments in the first three years of exploration total $219 million, while the government will receive $26.85 million in signatory bonuses, Energy and Mineral Resources Minister Purnomo Yusgiantoro said.

"This indicates that today Indonesia is still an attractive place for oil and gas exploration activities," Purnomo said. He added that the CBM and oil and gas contracts were expected to create approximately 2,000 new job opportunities.

The 12 oil and gas exploration contracts included the winners of 11 blocks announced last week. Evita H. Legowo, director general for oil and gas at the ministry, said the additional contract was supposed to be signed earlier, but the signing was delayed until Tuesday.

The delayed contract involves the rights of a local firm, PT Harpindo Mitra Kharisma to develop the Lampung III oil and gas block.

Purnomo said the 12 new contracts will add to the existing 107 blocks under development.
"Today, we will be adding 12 oil and gas contracts to the companies that have won previous oil and gas bidding rounds.