ANNOUNCEMENT INDONESIA PETROLEUM BIDDING ROUND YEAR 2006

Directorate General of Oil and Gas releases 41 acreages to be offered in year 2006, which consists of 20 acreages through Reguler Tender and 21 acreages through Direct Proposal tender .

The 20 acreages through Regular tender are :

1. Tuna Block, Offshore Natuna
2. Cucut Block, Offshore Natuna
3. Dolphin Block, Offshore Natuna
4. West Air Komering Block, Onshore South Sumatera
5. South East Mahakam Block, Offshore East Kalimantan
6. Karama Block, Offshore West Sulawesi
7. Malunda Block, Offshore West Sulawesi
8. Mandar Block, Offshore West Sulawesi
9. Sadang Block , Offshore South Sulawesi

10.South Mandar Block, Offshore South Sulawesi

11.Sageri Block, Offshore South Sulawesi

12.South Sageri Block, Offshore South Sulawesi

13.Cakalang, Block, Offshore Natuna ( Available Block)

14.Kerapu Block, Offshore Natuna ( Available Block)

15.Baronang Block, Offshore Natuna ( Available Block)

16.Tigau Block Offshore East Kalimantan ( Available Block)

17.Mentana Block, Offshore East Kalimantan ( Available Block)

18.Enrekang Block, Onshore South Sulawesi ( Available Block)

19.Lampung I Block, Offshore Lampung ( Available Block)

20.Ujung Kulon Block, Onshore and offshore west Java ( Available Block)

The 21 New acreages offered through direct proposal based on the proposal of

some companies that intend to Invest in oil and gas exploration and exploitation activity, are :

1. Duyung Block, Offshore Natuna
2. Pari Block, Offshore Natuna
3. Tonga Block, Onshore North Sumatera
4. Lemang Block, Onshore Central Sumatera
5. Batu Gajah Block, Onshore Central Sumatera
6. Batanghari Block, Onshore Central Sumatera
7. Karangagung Block, Onshore South Sumatera
8. Sekayu Block, Onshore South Sumatera
9. Alas Jati Block, Onshore East Java

10.Gunting Block, Onshore East Java

11.Situbondo Block, Onshore and offshore East Java

12.North Kangean Block, Offshore East Java

13.Sibaru Block, Offshore East Java

14.West Sangata Block, Onshore East Kalimantan

15.Kutai Block Onshore and offshore East Kalimantan

16.Mahakam Hilir Block, Onshore East Kalimantan

17.Wain Block, Onshore East Kalimantan

18.Kuma Block, Offshore West Sulawesi

19.Budong-Budong Block, Onshore West Sulawesi

20.Karana Block, Makasar Strait

21.Buton Block, Onshore and Offshore Southeast Sulawesi

Directorate General of Oil and Gas gives an opportunity to any company who intend to participate in this bidding round for the acreages mentioned above. The company which is want to participate in this bidding round shall follow the procedure and comply with the term and condition stated in the Bid Document and Direct Proposal Document. The accessing to Bid Document and Direct Proposal Document will commence on August 28, 2006. The Submission of Participating Document will be closed on October 11 , 2006 at 14.30 pm for the Direct Proposal Tender and on December 26, 2006 for the Regular Tender at 14.30 pm and must be submitted to:

Sekretariat Tim Penawaran Wilayah Kerja Minyak dan Gas Bumi

Attention: Tim Lelang for Reguler Tender or Tim Penilai for Direct Proposal

Direktorat Jenderal Minyak dan Gas Bumi

Departemen Energi dan Sumber Daya MineralGedung Plaza Centris Lantai 7,Jl. H.R. Rasuna Said Kav.B-5, Phone : 62-21-5268910 (ext.135) Fax : 62-21-5268963 Jakarta Selatan 12910