Pertamina seeks majority stake at Mahakam block

State oil and gas company PT Pertamina is eyeing to acquire majority stake at Total-operated Mahakam giant gas block in East Kalimantan when the block?s contract expires in 2017, President Director Karen Agustiawan said.

?We are ready to take over the majority interest at the block,? she told Petromindo.Com on a sideline of a parliamentary hearing on Wednesday. She did not give detail about the percentage.

Karen said that Total is offering 10 percent of Mahakam interest to Pertamina.

Mahakam giant block, which supplies around 80 percent of Bontang LNG gas requirement, is operated by Total, which has 50 percent interest with the remaining balance is held by Japan?s Inpex Corporation.

The block?s contract will expire in 2017 and the government has the right to extend or to terminate the contract.

Total?s Senior Vice President Asia Pacific said on Monday it will decide to set aside up to US$3 billion by end this year for the upgrade of the Mahakam gas block. (godang)