Total committed to investing $2b in Mahakam
Total, Petamina given until June to decide on shares in Mahakam
Friday, May 15 2015 - 01:52 PM WIB
French oil and gas giant Total SA, through its subsidiary Total EP Indonesie, remains committed to investing in the gas-rich Mahakam block in East Kalimatan until its contract on the block expires in 2017.
?We are in the details in the coming months, in the constructive and pragmatic spirit, because now (is) the time to find a pragmatic solution for the interest of Indonesia and we are still investing around US$1.5 to 2 billion in the meantime. Now, it is important to have the vision of Mahakam transition,? CEO of Total Group Patrick Pouyanne told the press following a courtesy call on President Joko Widodo at the state palace on Friday.
Patrick was accompanied by Minister of Energy and Mineral Resources Sudirman Said, Chairman of SKK Migas Amin Sunaryadi, Head of Performance Control Unit at the ministry Widhyawan Prawiraatmadja, President of Total EP Arnaud Breuillac, SVP Asia Pacific of Total EP Olivier de Langavant, and President & General Manager Total EP Indonesie Hardy Pramono.
?President Jokowi confirms that Total will remain part of, we will work with Pertamina for the future of Mahakam,? Patrick said, emphasizing that Total is still committed to Indonesia.
Sudirman Said confirmed that Total expressed its commitment to continue investing in Indonesia, because the company has been operating in Indonesia for more than 50 years, and they want to continue to be here to jointly develop Indonesia?s oil and gas.
"With regard to the future of Mahakam block, Total has understood that Indonesia intends to be an operator of the block and Total is ready to cooperate with Pertamina as NOC (national oil company),? he said.
Sudirman said he has given Total and Pertamina until June to reach an agreement on how they will work together during the transition period and share distribution in the block.
?By June, we expect there has been an agreement between them on how they will work during the transition period and who much shares each of them will have in the block,? Sudirman said
Editing by Johannes Simbolon