Total finally accepts government?s offer on Mahakam block

Total E&P Indonesie (TEPI), the local subsidiary of French firm Total SA, finally agreed on Wednesday to accept the government?s offer for a participating interest in the Mahakam block once the firm?s current contract expires at the end of 2017, reports said on Thursday.

The government decided last month to handover 70 percent of the interest in the gas-rich Mahakam block, in East Kalimantan, to state-owned oil and gas firm PT Pertamina, and the remaining 30 percent to TEPI and partner Inpex Corp. TEPI, however, was apparently disappointed with the government?s decision as the company had expected for a larger stake.

TEPI?s decision to finally accept the offer was made following a meeting Wednesday with Pertamina. ?The meeting with Total produced a decision that Total wants to participate with a 30 percent interest together with Inpex,? said Pertamina Upstream Director Syamsu Alam as quoted by Kontan.

Head of Media Relations and Corporate Communications at TEPI, Kristanto Hartadi declined to provide much comment. ?The Wednesday meeting only discussed the principles for further discussions on Mahakam. So there is no result yet,? he told the paper.

Syamsu said that his company was looking to have stake in Total?s assets overseas, swapping them with the Mahakam block stake. He declined to provide details. ?We?re trying to swap it with Total?s assets overseas,? he said. (*)