Pertamina hopes to complete Mahakam block agreements with Total in November

State-owned oil and gas company PT Pertamina said that its subsidiary PT Pertamina Hulu Mahakam is expected to complete the ongoing revision of a transfer of operatorship agreement (TOA) for the Mahakam block with current operator PT Total E&P Indonesie and its partner Inpex Corp at the end of November 2016.

Pertamina said in a statement that the revision of the TOA is necessary to adjust to the amended version of Pertamina?s 2018-2038 production sharing contract for the Mahakam block.

The statement was issued after Pertamina signed the amendment of the PSC on Tuesday with upstream oil and gas authority SKK Migas. The original TOA was signed in July of this year.

The government has decided to transfer the ownership of the Mahakam block to Pertamina in 2018 after the current contract of Total E&P Indonesie and Inpex expire at the end of 2017. The amendment of the PSC will allow Pertamina to be able to start making investment at the Mahakam block in January 2017 during the transition period.

Pertamina also said that a bridging agreement is expected to be completed in November.

Pertamina reiterated that it plans to spend about $180 million for drilling of 19 wells next year during the transition period at the Mahakam block so that oil and gas production of the block can be maintained.

Editing by Reiner Simanjuntak