Pertamina, govt reach agreement on Mahakam and ONWJ contracts

By Febry Silaban

State owned oil and gas firm PT Pertamina (Persero) said it has reached agreement with the government on two aspects of the future Production Sharing Contract (PSC) on the Mahakam block in East Kalimantan and the Offshore North West Java (ONWJ) block, in West Java.

The firm is optimistic that PSC for the two blocks can be signed this year, Vice President of Corporate Communications Wianda Pusponegoro said.

Wianda said that the agreement is related to production split and the amount of signature bonuses payable by the firm to the government.

"We feel happy that we have finally reached agreement on the two most important aspects. Until after the signing of the contracts, we can?t release the figures of signature bonuses for the two blocks,? she said.

Editing by Johannes Simbolon