Pertamina eying stake in Total?s block

State owned oil and gas company PT Pertamina is interested to acquire at least 10 percent share in Mahakam Delta in East Kalimantan operated by French firm Total SA, a company official said.

Pertamina?s upstream director Sukusen Soemarinda said the acquisition effort is part of the company?s efforts to increase production.

Total is seeking to extend its contract over the block that contributes 8 percent of the company?s output. The contract will expire in 2017.

The government sometimes provides an opportunity to Pertamina to gain a stake in a concession at the time contractors are seeking to extend their contracts.

Ananda Idris, spokesman for Total's Indonesian unit, declined to comment

The concession, including Tunu and Peciko fields, have pumped 10 trillion cubic feet (TCF) since starting up in the 1980s to feed the world's largest liquefied natural gas plant in Bontang in the province. Total has said it would invest US$8 billion to tap an estimated 13 TCF of remaining reserves. (Godang)