REPUBLIKA.CO.ID, JAKARTA -- The government said it will auction first shale gas blocks through direct offer.

The government auctioned non-conventional gas blocks in Kisaran, North Sumatra, Riau and West Tanjung in Central Kalimantan, the Oil and Gas Directorate General said in a news release on Friday.

"Bidding documents will be available on Monday and bidding is to be submitted until January 30," the news release said.

The government invited bidders having financial and technical capacity to take part in the tender, it said.

So far there is only one concession of shale gas cooperation contract, it said.

There are around seven shale gas basins in the country including three in Sumatra -- Baong, Telisa, and Gumai -- and two each in Java and Kalimantan.

The shale gas basins are estimated to have a total reserve of 574 trillion cubic feet (TCF) -- larger than coal methane gas reserve of 453.3 TCF and remaining conventional gas reserve of 153 TCF.

Shale gas reserves are found around 300-400 meters underground or not as deep underground as conventional reserves.

Natural gas reserves could be as deep as 2,000 meters underground.

The United States has utilized shale gas in large scale.

Indonesia is a major producer of natural gas.

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