IAGI backs Pertamina to take over Mahakam

By Hisky Darmayana

A debate continues over who should manage expiring oil and gas contracts, including the hugely lucrative Mahakam block, with a group of Indonesian geologists the latest to join the fray saying national firms such as PT Pertamina should have no problem in operating any blocks.

The contract of the Mahakam block, currently operated by Total SA under a 50:50 percent stake composition with Inpex Corp., expires in 2017 and debates have raged on over whether the operatorship should be extended or be handed over to Pertamina, which has made official request to the government.

Indonesian Geologist Association (IAGI) Chairman Rovicky Dwi Putrohari said in a media release that the association throws its weight behind the state company over Total, saying Pertamina is fully capable of operating the block.

?We have qualified human resources perfectly capable to operate any blocks in the country,? he said in a media release dated on Tuesday.

Moreover, he added, being managed by national firm would mean enhancing the opportunity of securing the national energy supply security. He did not elaborate.

Editing by Dadan Wijaksana