Pertamina plans $700m capex for Mahakam

By Bonha Ventura Sebayang

State-owned oil and gas firm PT Pertamina plans to allocate US$700 million of capital expenditure for Mahakam block in East Kalimantan next year.

This was revealed by Pertamina President Director Elia M. Manik on Thursday, but did not provide further details about the planned spending. Pertamina is set to take over the Mahakam block early next year from Total after the latter contract together with partner Inpex Corp expires at the end of this year.

Pertamina has offered Total to particpate in the development of the Mahakam block under the new contract, offering up to 30 percent participating interest. But Total has yet to respond to the offer. The company has previously requested up to 39 percent participating interest as part of conditions for its continued role in the development of the block.

Editing by Reiner Simanjuntak