Pertamina in talks with Total over Mahakam Block
Tuesday, November 13 2012 - 01:57 AM WIB
State-owned oil and gas firm PT Pertamina is still in negotiation with Total EP Indonesie as part of efforts to take over the operatorship of the gas-rich Mahakam Block in East Kalimantan after the latter company?s contract over the block expires in 2017.
Director of Business Development at Pertamina, Andriyansah told Petromindo.com that among of the main lingering issues is regarding the financial aspect. ?There are a number of lingering issues that must be settled between the contractor and the government. They?re mostly related to the financial aspect including the terms and condition,? he said, but declined to provide further details.
Vice Minister of Energy and Mineral Resources Rudi Rubiandini has previously said that the government would allow Pertamina to take over the operatorship of the Mahakam Block from Total. But Pertamina is unlikely to run the block solely in the first few years after the transfer from Total to help ensure that production won?t drop.
The company may have to work with other contractors initially in managing the block, including the possibility of Total retaining the operatorship role during the first five years, before handing the full control to Pertamina.
Editing by Reiner Simanjuntak