Pertamina gets 70%, Total-Inpex 30% interest in Mahakam

By Febry Silaban & Godang Sitompul

The government has finally decided on the Mahakam block?s share composition in the post-contract period, giving 70 percent to state owned oil and gas firm PT Pertamina and 30 percent to both current contractors French firm Total and Japanese firm INPEX.

At present, the gas-rich block located in East Kalimamtan is equally owned by Total and INPEX.

?After a long process (of discussions), the government has finally decided that Indonesia will control a 70 percent interest in the block and Total ?INPEX will get 30 percent. Next, Pertamina and the regional government owned companies (BUMD), facilitated by the government, will talk on the (amount) of participating interest (of East Kalimantan government),? Minister of Energy and Mineral Resources said.

SKK Migas and the Directorate General of Oil and Gas are assigned to prepare the valuation process, transfer of operatorship, data access, terms and conditions of the new contract on the block which must be signed prior to the end of the existing contract on Dec. 31, 2017, Director General of Oil and Gas IGN Wiratmaja said.

Editing by Johannes Simbolon