Govt to decide on Mahakam block contract in 2012

Director General for Oil and Gas at the energy ministry Evita H. Legowo said the government will make decision on whether Total EP Indonesie?s contract in operating the Mahakam PSC to be extended or not in 2012.

?The decision on Mahakam is unlikely to be made this year. Our target is next year,? Evita told Petromindo.com.

Total EP is the operator of the Mahakam PSC, with 50 percent interest. The remaining 50 percent is owned by Japan?s Inpex Corporation.

Total has said earlier that it has submitted request to the Indonesian government to extend its contract to operate the block, which will expire in 2015.

The Mahakam block is currently Indonesia?s largest gas producer with production of around 2.4 BCFD, supplying gas to Bontang LNG plant.

Meanwhile, state oil and gas company PT Pertamina (Persero) in July sent a letter to the energy ministry, expressing its interest to acquire up to 51 percent interest in Mahakam PSC. (godang)