SKK Migas to issue decree on Mahakam block next week

Chairman of the upstream oil and gas authority SKK MigasAmienSunaryadi is expected to issue a decree next week to allow state-owned oil and gas firm PT Pertamina to start making investment in the Mahakam block early next year, Kontan reported on Friday.

The paper quoted SKK Migas Deputy for Business Support Control, Rudianto Rimbono as saying that the decree is a breakthrough ruling to facilitate the transfer of operatorship of the block to Pertamina from PT Total EP Indonesie, whose current contract in the block is set to expire at the end of 2017.

He added that early investment by Pertamina hopefully can avoid decline in the oil and gas production in the block, located in East Kalimantan. Rudianto said that the SKK Migas decree is currently being finalized. ?Hopefully, next week can be completed,? he said.

Meanwhile, Pertamina Vice President for Corporate Communication Wianda Pusponegoro said that the company has allocated US$2 billion for investment in Mahakam block. .(*)