Pertamina signals East Java may have share in West Madura block

State-owned oil and gas company PT Pertamina, the operator of the West Madura Offshore block, gave a signal that the East Java administration could have up to 10 percent participating interest in the block which is located within the provincial territory, Bisnis Indonesia reported on Wednesday.

Pertamina Spokesman M. Harun said on Tuesday that in line with the existing regulation, East Java via provincial-owned company could have a maximum 10 percent participating interest, but the plan must be first discussed with Kodeco, Pertamina?s partner in the block.

Harun said that the East Java participating interest in the West Madura block is not free, meaning that the provincial administration must provide equity participation.

The East Java administration has been demanding for a stake in the oil block. (*)