Mubadala interested in Mahakam block

United Arab Emirates? Mubadala Petroleum is interested to have a participating interest in Mahakam block, in East Kalimantan, according to a senior government official.

Mubadala senior officials met on Tuesday with Deputy Minister of Energy and Mineral Resources Arcandra Tahar to express its commitment to continue investment in Indonesia?s upstream oil and gas sector.

Director General of Oil and Gas of the ministry, Ego Syahrial said in a statement issued late Wednesday that during the meeting, Mubadala expressed its interest to acquire shares in Mahakam block after the current contract of Total and Inpex expires at the end of this year.

Ego said that the government advised Mubadala to discuss its plan with state-owned oil and gas firm PT Pertamina, which will take over the block starting next year. He added that Pertamina was also looking for partner in the development of the Mahakam block.

Pertamina has offered Total and Inpex up to 30 percent participating interest in the block under the new contract, but Total has insisted for a participating interest of up to 39 percent as part of conditions for its continuing role in the development of the Mahakam block.

Editing by Reiner Simanjuntak