Pertamina says it?s able to operate Mahakam block without Total

By Godang Sitompul

Petromindo

President Director of state-owned oil and gas firm PT Pertamina, Elia Massa Manik said on Wednesday that the company is able to manage and develop the Mahakam block, in East Kalimantan, even without the participation of current operator Total E&P Indonesie.

?With or without (the role of) Total, Pertamina must be able to operate Mahakam,? Elia said, when asked by reporters for response on Total?s recent letter to Ministry of Energy and Mineral Resources demanding for a 39 percent interest in the block as part of conditions for the company to participate in managing the block when its current contract expires at the end of this year. Total plans to equally share the 39 percent interest in the block with current partner Inpex Corp. He declined to provide further comments.

The government has decided to transfer the operatorship of the Mahakam block to Pertamina after the current contract expires. The government has asked Total and Inpex to continue their participation in the block, amid concerns over Pertamina?s limited capacity in maintaining the block?s production, previously offering them with maximum 30 percent interest in the block.

Editing by Reiner Simanjuntak