Pertamina threatens to take over all interest in Mahakam
Saturday, November 14 2015 - 12:09 PM WIB
The government decided several months ago to award a 70 percent interest in the block to Pertamina, giving the rest to Total and Inpex after the expiry of the current contract on the block at the end of 2017. Pertamina later decided to hand over 10 percent of its stake to the provincial government of East Kalimantan. Both firms, which now equally owns the block, have yet to officially respond whether to accept the government?s decision.
?We don?t want their behavior to be an obstacle for us,? Pertamina?s spokesperson Wianda Pusponegoro was quoted as saying by Tempo on Saturday.
She said Pertamina targets to start negotiation with the government on the new contract for the block. The target however could not be achieved if the talks with Total and Inpex on the ownership composition remain inconclusive. Negotiation between Pertamina and both firms is ongoing with presence of SKK Migas and Oversight Committee attending as independent observers.
Wianda also asked Total to open its data room for Pertamina. ?When it comes to a block that is going to be terminated, the existing operator is obliged to open its data room for the future operator,? she said.
Meanwhile, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja said the decision regarding the ownership composition is a final one. The government is now only willing to negotiate with the contractors on the terms and conditions of the new contract.
However, Upstream Director at the ministry Djoko Siswanto said the government is ready to listen to Total in case the firm has a certain request. He also said the government plans to increase Pertamina?s production sharing to 40 percent in the new contract, from the normal level of 15 percent in the new contract.
?The reason is because Pertamina also pays dividend to the government,? Djoko said. (*)