Minister sets deadline for Total and Inpex
Wednesday, December 2 2015 - 01:11 AM WIB
Minister of Energy and Mineral Resources Sudirman Said said he has given French firm Total SA and its Japanese partner Inpex Corp. until the end of this month to decide whether they accept the government?s decision regarding the Mahakam block in East Kalimantan.
?We have informed Total and Inpex that they must make a decision by the end of this month,? Sudirman said on Monday during a hearing with the House of Representatives? Commission VII for energy affairs.
He also said the ministry has also informed Pertamina that it must be well prepared for any scenario that may happen with Mahakam block at the end of this year.
?Pertamina must be well prepared for anything that may happen, including that the current operators (Total EP Indonesie) rejects the portion of interest offered by the government,? he said, adding that at present, negotiation between the government?s team comprising officials from upstream authority SKK Migas and the Directorate General of Oil and Total and Inpex is nearing conclusion.
He said he hoped that the new contract on the block can be signed by the end of this year.
The government decided several months ago to award a 70 percent interest in the block to Pertamina, giving the rest to Total and Inpex after the expiry of the current contract on the block at the end of 2017. Pertamina later decided to hand over 10 percent of its stake to the provincial government of East Kalimantan. Both firms, which now equally owns the block, have yet to officially respond whether to accept the government?s decision.
Editing by Johannes Simbolon