Pertamina still has chances to get a stake in Mahakam block: BPMIGAS

Upstream oil and gas regulator BPMIGAS' chairman Raden Priyono said on Sunday that state-owned oil, gas firm PT Pertamina was still possible to get a stake in the Mahakam block in East Kalimantan before the contract of the existing contractors on the block expires in 2017.

The statement apparently contradicts contract the previous statement by BPMIGAS?s deputy of financial, economic, and marketing Wibowo S. Wirjawan last week, who said the current ownership of the block could not be changed under the extension of the LNG contract with Japanese buyers.

It was the Japanese buyers who demanded that the existing ownership structure of the block be maintained as a requirement to extend the contract to purchase gas from the block, according to Wibowo.

The gas is delivered to Japan after being converted into LNG at the Bontang LNG plant in East Kalimantan.

Priyono, however, said on Sunday that the Japanese buyers? concerns ?will not affect Pertamina?s plan to enter Mahakam block or Total?s plan to extend its contract.

"[The possible stake sale is] between Pertamina and Total, not with buyers,? he was quoted by Jakarta Globe as saying.

Pertamina spokesman Basuki Trikora Putra said the company was still in intensive negotiations with Total to acquire a stake in the Makaham block.

?We have not yet reached any deal on the percentage of participating interest that Pertamina may purchase,? he said, adding that the discussions included the possibility of an asset swap.

Total spokeswoman Judith Navarro Dipodiputro confirmed the talks, but declined to elaborate further.

Karen Agustiawan, Pertamina?s president director, said last month that Pertamina had prepared financing to purchase the stake with between 15 percent and 25 percent of the purchasing costs to be covered with internal sources.

France?s Total S.A. operates the block with a 50 percent stake, in partnership with Japan?s Inpex, which controls the other 50 percent. (*)