Govt to appoint independent committee to oversee Pertamina-Total negotiation
Friday, September 18 2015 - 02:13 AM WIB
The Ministry of Energy and Mineral Resources will set up an independent oversight committee to monitor the progress of the talks between state owned oil and gas firm PT Petamina and French firm Total E&P Indonesie (TEPI) on the terms and conditions of their partnership in Mahakam block in East Kalimantan.
The government has allowed Pertamina to control a majority stake in the block, leaving a minority stake to TEPI, after the expiry of the current contract held by TEPI and its Japanese partner INPEX Corp. in 2017.
?We are looking for people from independent parties to be placed in the oversight committee which will continually oversee the transition process,? the ministry?s Director of Upstream Business Supervision Djoko Siswanto told Petromindo.com.
He said at present, Pertamina and TEPI are in talks on the terms and conditions on the new contract and their partnership in the block.
Djoko noted that Total as the operator of the block for almost 50 years will not leave the block in a good condition for the sake of its reputation as a good operator. The firm however insists that the terms and conditions should be commercially good for the firm?s business.
?Total does not want to leave the block in a mess since it is its legacy. It wants to maintain its presence there. Still, the terms and conditions are important because after all it is still a business,? Djoko said.
Editing by Johannes Simbolon