East Kalimantan?s firm ready to participate in Mahakam block
Friday, June 19 2015 - 02:36 PM WIB
East Kalimantan provincial government has assigned its own company called PT Migas Mandiri Pratama (MMP), to take a participating interest (PI) in the Mahakam block in the post-existing contract period and the firm will use bank loans rather than a loan from state owned oil and gas firm PT Pertamina to finance its contractual obligation.
"For seven years, we have prepared finances for our company. If Pertamina is able to prepare its own finances, so is a local enterprise. So now we are ready to invest in the Mahakam block," MMP's President Director Hazairin Adha told Petromindo.com.
He emphasized that the company?s funds are not sourced from the provincial budget (APBD), but from the banking sector. "We will soon release the names of the banks," he said.
"We actually hope that our PI (Participating Interest in Mahakam block) could be more than 10 percent. With regards comments saying that huge funds are needed for the block and we may not have such huge funds, people should not underestimate local companies? financial capability. Pertamina can collect funds, so can we," he insisted.
The government has suggested any company which is assigned by the East Kalimantan province to take the interest in Mahakam block to take loans from Pertamina.
The East Kalimantan government however rejects the suggestion.
?Don?t oblige us to get loan from Pertamina. If other funding sources are better, why not?? Hazarin said, adding that over time, the firm will prove itself not only financially capable of paying for interest in the Mahakam block, but also buying interest in other blocks.
Editing by Johannes Simbolon