Minister submits recommendation on Mahakam to Jokowi

By Godang Sitompul

Minister of Energy and Mineral Resources Sudirman Said officially on Wednesday submitted his recommendation on the share composition of the Mahakam block to President Joko Widodo (Jokowi) for approval.

The recommendation was made based on the minister?s discussion with the existing partners in the block, French firm Total SA and Japanese firm INPEX Corp., and state owned oil and gas firm PT Pertamina which aspires to take over the block after the expiry of the contract on Dec. 31, 2017.

In his recommendation, the minister proposed that Pertamina hold a majority stake in the block, a source said, without providing details.

Although the government has publicly voiced supports for Pertamina to take over the block, they also encourage the state firm to take the existing holders of the block as partners to ensure the stability of the block?s production. Many people doubt Pertamina?s ability to operate the block given the block?s complexity and Pertamina?s lack of experience.

Editing by Johannes Simbolon