Pertamina opposes transition period proposal for Mahakam

State-owned oil and gas firm PT Pertamina opposes the five-year transition period for the Mahakam Block as proposed by PT Total E&P Indonesie (TEPI) when the latter?s contract over the block expires end of 2017, Kontan reported on Monday.

The paper quoted Pertamina Downstream Director Hanung Budya as urging the government to hand over the block to be managed by the state-owned firm once TEPI?s contract expires in 2017.

He added that allowing for a transition period is tantamount to giving another opportunity for TEPI to control and manage the block after the expiry of its existing contract.

Total E&P President for Asia Pacific, Jean-Marie Guillermou, announced the transition period proposal on September 26 to help maintain stable gas production of the block once the company?s contract expires.

During the transition period, Total proposed the block to be managed by an Operating Body, in which Pertamina will be a part, and Total would transfer its know-how in the operation of the block. (*)