Pertamina says ready to take over Mahakam

Interim President Director of state owned oil and gas firm PT Pertamina Muhammad Husen has sent a letter to Minister of Energy and Mineral Resources Sudirman Said, saying the firm is ready to take over the whole ownership of Mahakam block in East Kalimantan from Total E&P Indonesie and INPEX once the current contract expires on Dec. 31, 2017.

?We have sent a letter to the government via the minister of energy and mineral resources, saying Pertamina is capable of managing Mahakam block 100 percent after the expiry of the contract, either financiall and technically. Thereby, we call on the government to immediately name it as as the operator of Mahakam so that there will enough transition period,? Husen said in a statement.

He pointed out for examples the Offshore North West Java and West Madura Offshore blocks, whose production increased after being taken over by Pertamina.

He said Pertamina is now looking into the data room of Mahakam block in order to understand the technical and operational conditions of the working area. Pertamina will send proposals on its comprehensive plan for the block within three months, he said.

Editing by Johannes Simbolon