Pertamina reaffirms commitment to participate in Makassar Strait exploration blocks

State oil and gas company Pertamina reaffirmed its participation in two deep sea exploration blocks in Makassar Strait operated by TotalFinaElf and Amerada Hess.

?We are committed to our 15 percent participation in both Donggala and Tanjung Aru exploration blocks. But Pertamina is not in the position to pay any expense incurred in acquiring the blocks because by regulation, we have the right to up to 15 percent participation in any block offered by the government,? said Iin Arifin Takhyan, Pertamina?s upstream director Tuesday.

Iin said Pertamina is willing and ready to pay its share of investment from the point after government awards those blocks while TotalFinaElf and Amerada Hess insisted that Pertamina should share the cost from the beginning.

Government awarded Donggala block to TotalFinaElf, which partnered with Japan?s Inpex and Tanjung Aru block to Amerada Hess lwhich partnered with Petronas last year.

2001 new blocks tender stipulated that Pertamina had the right to participate up to 15 percent in any blocks it chose.

Industry sources said that Pertamina had been delaying disbursement of its investment share in the new blocks, causing TotalFinaElf and Amerada Hess doubting the former?s commitment to participate in the blocks.

Iin said Pertamina is currently asked government whether or not it should share the cost from the beginning of the process. (alex/godang)