Pertamina urges SKK Migas to issue decree on Mahakam block transition
Tuesday, November 22 2016 - 01:41 AM WIB
State-owned oil and gas firm PT Pertamina urged upstream oil and gas authority SKK Migas to issue a decree as guideline for the company in financing the operation of the Mahakam block during the 2016-2017 ?transition period.?
Pertamina Upstream Director Syamsu Alam said on Monday that the SKK Migas should issue the decree as a follow up to the recent introduction of a new Minister of Energy and Mineral Resources Regulation No 30/2016, which revises Ministerial Regulation No 15/2015, and the revision of the current Mahakam block production sharing contract, both of which allows Pertamina to start making investment in the Mahakam block during the transition period of the block?s operatorship to the company from current operator Total E&P Indonesie.
The government has decided to transfer the operatorship of the Mahakam block, in East Kalimantan, to Pertamina after the current contract of Total expires at the end of 2017. Pertamina wants to start making investment during the 2016-2017 transition period to help maintain the block?s production level.
?Next year is a crucial year. With the progress of preparations now being made, we?re optimistic that the performance of the Mahakam block can be maintained,? Syamsu said.
He said that Pertamina through subsidiary PT Pertamina Hulu Mahakam and Total E&P have been coordinating in preparing the WP&B 2017.
Pertamina has previously said it plans to invest US$180 million for the drilling of 19 wells before 2018 so that gas production at Mahakam block can be maintained at 1.2 bscfd, and condensate at around 20,000 bcpd in 2018-2019.
Editing by Reiner Simanjuntak