E. Kalimantan wants to have interest in Mahakam Block

By Godang Sitompul

East Kalimantan Governor Awang Farouk said that the provincial administration wants to have a participating interest in the gas-rich Mahakam Block to help improve the welfare of the local people.

?The Mahakam Block has a huge gas reserves that could last for another 20 years. The people of East Kalimantan are demanding for a participating interest. This is in line with the mandate of the law which allows national participation,? he said at a speech on Thursday during the inauguration of the South Mahakam field within the block.

Awang said that East Kalimantan is endowed with various natural resources such as oil, gas and coal, but it has yet to significantly benefit the local people. Therefore, the province wants to have greater economic share from the development of those resources.

Total EP Indonesie?s contract over the Mahakam Block, which is located in the province, is scheduled to expire in 2017. State-owned oil and gas firm Pertamina has been tipped to takeover the block.

Editing by Reiner Simanjuntak