ANNOUNCEMENT THE FIRST INDONESIA PETROLEUM BIDDING ROUND 2005 DEPARTMENT OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF OIL AND GAS

REGULAR TENDER : 14 BLOCKS TODAY’S TENDER ROUND REGULAR TENDER : 14 BLOCKS DIRECT OFFER : 13 BLOCKS

(Regular and Direct Offer Tender) I N D O N E S I A ACREAGE TO BE OFFERED 2005-2006 (Regular and Direct Offer Tender)

(BPMIGAS & Contractor) REGULER TENDER Blocks are prepared and designated by Migas and offered through tender. Evaluation period from announcement date to bid submission is 5-6 months. 1. Announcement Special announcement of the new offered working acreage. 1 1 Bid Invitation Announcement 2. Bid Invitation Invitation will be disseminated to all companies through our home page at http://www.geomigas.com 2 2 Bid Invitation Bid Invitation 3. Bid Information 3 3 Bid Information Bid Information It contains the information of the tender process including instructions to the tender participant. The tender participant must purchase the Bid Information at MIGAS 4 4 Data & Information 4. Data & Information It is mandatory that any tender participant will have to purchase an official Government a data package through and set by MDM prior to submitting the tender document. 5 5 Clarification Forum Participation 5. Clarification Forum 6. Bid Participation 6 6 Bid Evaluation Bid Participation The tender participant should submit the entire tender document before or on the closing date of the tender 7 Determination of the 7 Bid Evaluation Winning Bidder 7. Bid evaluation The tender Team evaluates the Submitted document based on the technical analysis, financial outlay and commitment ( such as signature bonus ), and especially the firm commitment of the Work Program as proposed by Bidder Determination of the 8 8 Successful Bidder 8. Determination of the Winning Bidder Based on The Tender Team Recommendation, The Director General of Oil and Gas appoints the successful Bidder Contract Signing 8 9 (BPMIGAS & Contractor) 9. Contract Signing BPMIGAS and the successful Bidder will sign The Cooperation Contract

ACREAGE TO BE OFFERED YEAR 2005-2006 I N D O N E S I A ACREAGE TO BE OFFERED YEAR 2005-2006 (REGULAR TENDER) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 LEGEND: Cakalang Block Krapu Block Baronang Block Lampung-I Block Lampung-II Block East Bawean-I Block East Bawean-II Block Damplas Block Baleisang Block Sarumana Block Pasangkayu Block Buton-I Block Buton-II Block Kamrau Block

WEST NATUNA AREAS

OFFSHORE LAMPUNG AREAS

EASTERN JAVA AREAS

MAKASSAR STRAIT AREAS

SOUTH EAST MAKASSAR AREAS

WEST PAPUA AREAS

FISCAL TERM AND CONDITION FIRST ROUND REGULAR TENDER YEAR 2005 (1) NO BLOCK LOCATION SIZE (Sq Km) GOVERNMENT TAKE (%) CONTRACTOR TAKE (%) INVESTMENT CREDIT AFTER TAX FIRST TRANCHE PETROLEUM OIL GAS 1 2 3 4 5 6 7 8 9 10 CAKALANG OFF. NATUNA 4,495.35 75 60 25 40 - KERAPU 5,640.00 BARONANG 5,137.86 EAST BAWEAN I OFF. JATIM 4,199.00 80 65 20 35 EAST BAWEAN II 4,254.59 LAMPUNG I OFF. LAMPUNG 4,238.75 70 30 LAMPUNG II 4,139.70 BUTON I ON/OFF. BUTON 6,257.00 80 **) BUTON II 6,231.19 DAMPLAS MAKASSAR STRAIT 6,391.70

FISCAL TERM AND CONDITION FIRST ROUND REGULAR TENDER YEAR 2005 (2) NO BLOCK LOCATION SIZE (Sq Km) GOVERNMENT TAKE (%) CONTRACTOR TAKE (%) INVESTMENT CREDIT AFTER TAX FIRST TRANCHE PETROLEUM OIL GAS 1 2 3 4 5 6 7 8 9 10 11 BALEISANG MAKASSAR STRAIT 5,461.00 65 60 35 40 80 **) 12 PASANGKAYU 4,707.63 13 SURUMANA 5,339.63 14 KAMRAU ON/OFF. WEST PAPUA 5,256.66 15 *) - *) First Tranche Petroleum (FTP) 15 % is shared between the parties in accordance with the sharing split **) For oil and gas dev. for water depth > 1000 m

DIRECT OFFFER All Companies applying for the block through the direct offer mechanism shall propose and conduct presentation to Migas, covering technical assessment of the block potential and company profile. Evaluation period from announcement date to bid submission is one (1) month. Two (2) types of Direct Offer Mechanism: - propose for existing unsold blocks - propose for certain open area w / w.o joint study.

PROPOSALS BY INTERESTED COMPANY FLOW CHART OF DIRECT OFFER TENDER a. AVAILABLE BLOCKS Remaining and available blocks (unsold blocks) from previous tenders. The terms for the blocks remain the same as set at the time of the previous tender. b. PROPOSED BY INTERESTED COMPANY Blocks are prepared and proposed by interested company. Migas will evaluate the proposal and prepare the terms & condition. c. JOINT STUDY BY INTERESTED COMPANY Blocks are prepared and designed based on the result of joint study between Migas and Interested Company AVAILABLE BLOCKS (UNSOLD BLOCKS) PROPOSALS BY INTERESTED COMPANY Announcement Bid Evaluation Awards Contract Signing BID INFORMATION DATA PACKAGE JOINT STUDY BY INTERESTED COMPANY

I N D O N E S I A DIRECT OFFER

SUMATRA AREAS

JAVA & KALIMANTAN AREAS

ARAFURA SEA AREAS

FISCAL TERM AND CONDITION FIRST ROUND DIRECT OFFER TENDER YEAR 2005 (1) NO BLOCK LOCATION SIZE (Sq Km) GOVERNMENT TAKE (%) CONTRACTOR TAKE (%) INVESTMENT CREDIT AFTER TAX FIRST TRANCHE PETROLEUM OIL GAS 1 2 3 4 5 6 7 8 9 10 LHOKSEUMAWE NAD 5,908.24 75 60 25 40 110 WEST KAMPAR RIAU 4,471.31 85 65 15 35 - BUNGAMAS SOUTH SUMATRA 2,231.86 80 20 BENGKULU 6,276.53 CITARUM WEST JAVA 4,440.32 N.E. MADURA V EAST JAVA 3,785.10 NORTH BALI II 3,954.38 55 45 EAST KANGEAN 5,448.00 TARITIP MAKASSAR STRAIT 4,150.00 15 *) 80 **) SEBATIK EAST KALIMANTAN 2,132.17

FISCAL TERM AND CONDITION FIRST ROUND DIRECT OFFER TENDER YEAR 2005 (2) NO BLOCK LOCATION SIZE (Sq Km) GOVERNMENT TAKE (%) CONTRACTOR TAKE (%) INVESTMENT CREDIT AFTER TAX FIRST TRANCHE PETROLEUM OIL GAS 1 2 3 4 5 6 7 8 9 10 11 AMBORIP V ARAFURA SEA 9,724.00 65 60 15 **) 35 40 - 12 AMBORIP VI 9,649.00 13 WAILAWI ***) EAST KALIMANTAN 30.74 100 NOTES : *) Divide between Government & Contractor **) For oil and gas dev. for water depth > 1000 m ***) Cost & Fee Agreement

EVALUATION AND GRADING (1) (Decree of Minister of Energy and Mineral Resources No.1480/2004) Administrative : - The Bid document’s compliance with the provisions set forth in the Qualification of Bid Participant. Technical : - The Bid evaluation will primarily be focused on the first 3-year firm commitment program - Wild cat well(s) for the first three (3) year exploration work program is required, supported with technical justification. - Proposed geological studies in accordance to acceptable and good engineering practices. Technical proposal shall be the most heavily weighted consideration.

EVALUATION AND GRADING (2) (Decree of Minister of Energy and Mineral Resources No.1480/2004) Financial : - The amount of the signature bonus - Financial statements to assess the ability of the bidder to fund the exploration and exploitation programs will be evaluated Past performances of Participant in previous Indonesian activities will be considered.

Accessing Data Participants can access data to be used for technical evaluation for the purpose of submitting exploration work program. Data Package (geological data and reports linked directly to tendered Acreages) - Sekretariat Tim Tender Wilayah Kerja Minyak dan Gas Bumi - Executing Agency MIGAS Data Management (MDM) PT. Patra Nusa Data Auxilary Data (geological data and reports related to areas outside of the tendered Acreage) Non- Exclusive Data (geological data obtained through non-exclusive surveys within the acreages or its immediate surrounding area) - PT. Western Geco Indonesia - PT. PGS Nusantara - PT. Veritas DGC Mega Pratama - PT. Gema Terra - PT. Elnusa Geosains

New Government Policy Signature Bonus : Minimum amount is US$ 500,000. Surety Bond : Winning bidder is obliged to submit Surety Bond in the amount of 70 % (seventy percents) of the signature bonus valid for 6 (six) months. Value Added Tax : Government assume and discharge Value Added Tax (VAT) and import duties on material related to Petroleum Operation in PSC Service Contract : Government will apply Service Contract (Cost and Fee) for producing block relinquished by Contractor.

TIME SCHEDULE REGULAR TENDER Access Bid Info : June 15, 2005 Bid Submission : November 10, 2005 DIRECT OFFER Bid Submission : July 15, 2005 The winning bidder will be announced three (3) weeks after Bid Submission Contract Signing will be arranged following announcement of the winning bidder

THANK YOU For further information, please contact : Directorate General of Oil and Gas Directorate Exploration and Exploitation Attn. Secretariat of New Working Acreage of Oil and Gas Management Plaza Centris, 1st and 7th Floor Jalan HR. Rasuna Said Kav. B-5, Jakarta 12929, Indonesia Phone : 62-21-5268963, 62-21-5268910 ext. 137, 135, 132 Facsimile : 62-21-5268963 E-mail : geomigas@indosat.net.id Htpp : www.geomigas.com