Inpex remains interested to have shares in Mahakam block

By Febry Silaban

Inpex Corp remains interested to have a participating interest in the Mahakam block, East Kalimantan, when the operatorship of the block will be transferred to state-owned oil and gas firm PT Pertamina in 2018 after the current contract expires at the end of next year.

Director of Upstream Oil and Gas Development Program at the Ministry of Energy and Mineral Resources, Tunggal said that Inpex expressed the interest during a meeting at the ministry on Monday.

He added that the Japanese firm has asked the ministry to help facilitate a meeting with Pertamina to discuss the possibility of having a participating interest in the block after 2017.

Tunggal, however, said that Inpex has yet to disclose how much shares it wants to have in the Mahakam block.

Tunggal said that current operator Total E&P Indonesie has yet to decide whether it is still interested to have a participating interest in Mahakam block after the current contract expires. He said that Total in its last letter to the ministry it is still in negotiation with Pertamina.

The government has decided to transfer 100 percent of the Mahakam block to Pertamina when the current contract of Total and Inpex expires at the end of next year. Total and Inpex currently each have equal shares in Mahakam block. Pertamina is allowed to divest up to 30 percent of its shares in Mahakam to partners.

Editing by Reiner Simanjuntak