Pertamina wants 51% interest at Mahakam when contract expires

State oil, gas company PT Pertamina (Persero) has on July 5, 2011 sent letter to ministry of energy and mineral resources to ask for 51 percent stake at Mahakam PSC block in East Kalimantan when the block?s current contract expires in 2017, a senior Pertamina official said as quoted by media.

Upstream Director M. Husen said that Pertamina now wanted outright interest ownership in the block, not in stages as earlier planned.

Pertamina has earlier said that it would acquire stake in the block in stages, starting with 15 percent this year ramping up to 45 percent before the block?s contract expires. Pertamina has been reportedly in talks with the block?s operator Total E&P Indonesie over the planned farm-in.

The Mahakam block is currently Indonesia?s largest gas producer with production of around 2.4 BCFD, supplying gas to Bontang LNG plant.

Indonesian unit of French giant Total SA has 50 percent stake in the block with the balance held by Japan?s Inpex Corp. (*)