Maluku has yet to reach agreement on interest in Masela block

By Godang Sitompul

The Maluku Provincial administration has yet to determine which regional-owned company will hold the region?s 10 percent participating interest in the gas-rich Masela block.

?There has yet to be an agreement (among the regions),? Director General of Oil and Gas, A. Edy Hermantoro told Petromindo.com Thursday.

As reported earlier, the West Maluku Tenggara Regency administration has urged the ministry to allow the regency-owned company PT Tanimbar Energi to be included in managing the 10 percent participating interest in the Masela block, which is located in the regency.

Japan?s Inpex Corp holds a majority stake in the block. Exploration results reveal a rich gas reserves in the Masela block, estimated at around 14 trillion cubic feet, considered as the largest in the eastern part of Indonesia.

Elsewhere, Edy said that this office is currently processing a request by Inpex to extend its contract over the Masela block. ?We have targeted for the decision over the contract extension to be made this year. But we hope that the Masela project can start operation in line with the target in 2018,? he said.

Editing by Reiner Simanjuntak