Pertamina may spend $200m to acquire stake in Mahakam PSC

State-owned oil, gas firm PT Pertamina may spend ?more than? US$200 million to buy 17 percent stake in Mahakam block in East Kalimantan operated by French firm Total SA.

Pertamina?s President Director Karen Agustiawan told reporters in Jakarta Thursday that the company may fund 60 percent of the acquisition cost from external financing.

In August 2009, Karean said that Pertamina wants to acquire a 15 percent stake in Mahakam giant gas block before the block?s contract expire in 2017.

Pertamina wanted the stake to be increased to 50 percent in 2017 when the block?s contract will be extended by the government, she said on August 24, 2009.

Total with its 50:50 partner in the block Inpex Corp. are trying to get contract extension for Mahakam and had already started negotiation with the government, which hinted participation of Pertamina as one of the conditions for contract extension.

Mahakam block is currently the biggest gas supplier to Bontang LNG plant with an output of around 2.6 BCFD and some 40,000 BPD of condensate. (kanti)