E. Kalimantan govt eyes stake in Ganal and Rapak blocks

The East Kalimantan provincial government, through its own oil and gas company, PT Migas Mandiri Pratama (MMP), is seeking to obtain a 10 percent participating interest in Ganal and Rapak blocks.

Sofyan Helmy, MMP's President Director, said on Thursday that the company had sent a letter to the Energy and Mineral Resources Ministry to formally request to obtain 10 percent stake in both the oil and gas blocks, JPNN reported.

The two oil blocks are owned by Chevron and its Italian partner Eni. Chevron which owns an 80 percent stake in the blocks act as the operator. Ganal has two exploration fields Gehem and Gendalo, while Rapak block has one exploration field Rangas.

MMP is also seeking a 10 percent stake in the Mahakam oil block which is currently operated by Total E&P Indonesie whose contract will expire in 2017. The government has not decided whether or not to extend Total's contract or to name another company as the operator.

Pertamina has extensively lobbied the government to be given the rights to operate the Mahakam block when the current Total's contract ends.

Under the current regulation, PSC contractors which first Plan of Development (PoD) has been approved, must offer 10 percent participating interest, on business-to-business basis, to Indonesian firm appointed by BPMIGAS. (*)