Pertamina named as new operator of Mahakam block
Saturday, March 28 2015 - 03:39 AM WIB
The government has finally appointed state-owned oil and gas firm PT Pertamina to become the new operator of the Mahakam block in East Kalimantan starting January 1, 2018.
Minister of Energy and Mineral Resources Sudirman Said said late Friday that Pertamina and current operator Total E&P Indonesie had started talks to help ensure a smooth transition process.
?We have officially gathered Pertamina and Total, with the objective of starting the transition process to prepare Pertamina to be ready as the operator of Mahakam block,? the minister said, following the first meeting between Pertamina and Total.
Total and Japan?s Inpex Corp currently manage the gas-rich Mahakam block, whose current contract is set to expire in 2017. Total has previously asked for an extension of the contract.
It remains unclear, however, whether Pertamina would assume 100 percent ownership of the Mahakam block.
Pertamin and Total on Friday started discussion on the transition scheme in managing the Mahakam block.
Sudirman said that the results of the businesses-to-business discussion are expected within the next two weeks.
He hopes that Pertamina would be able to participate with a minority stake in the Mahakam block during the transition period so that once the company assumes operatorship of the block in 2018 there would be no disruption to production.
"In the next two weeks, or 13 April 2015 at the latest, an agreement on the transition scheme is expected by the government including the formation of a transition team," said Sudirman.
Editing by Reiner Simanjuntak