Govt allows Maluku administration to farm in Masela block

The central government has given a green light for the Maluku provincial administration to acquire a 10 percent interest in the Masela block, a senior official at the Ministry of Energy and Mineral Resources said on Thursday.

"We have allowed them to acquire the 10 percent interest," Edy Hermantoro, director of upstream enterprise supervision, said.

He noted however the government would not help any production sharing contractors (PSC) acquire an interest in the block. PSCs that want to acquire a stake in the block should make a business-to-business deal with the owners of the block, he added.

He did not specify the PSC that want to acquire a stake in the block, but several firms including state owned oil and gas firm PT Pertamina, British firm BP Plc, American firm ConocoPhillips and French firm Total SA are reportedly interested in the block.

The block is 90 percent owned by Japanese firm INPEX and Indonesian firm PT Energi Mega Persada. INPEX has found huge gas reserves in at the Abadi field of the block and plans to process it into LNG. (Godang)