Total given until end of June to decide on Mahakam block participation

By Bernard Loebs

Minister of Energy and Mineral Resources Sudirman Said stated that Total E&P Indonesie, a subsidiary of French oil and gas firm Total SA, has been given until end of this month to decide on its participation in the development of the Mahakam block after its current contract expires at the end of 2017.

Sudirman said that the government does not have any problem if Total decides not to participate in the future development of Mahakam block in East Kalimantan as state-owned oil and gas firm PT Pertamina has been given 100 percent shares as the operator.

Sudirman said that discussions between Pertamina and Total are still in progress. ?The target is to wrap it up this month,? he said.

Total E&P Indonesie has been offered a 15 percent participating interest in Mahakam block after its current contract expires. As has been reported by this portal previously, Total is still reviewing conditions including oil price, field condition in the future, and the terms and condition of the new production sharing contract before deciding on whether to accept the participating interest offer after 2017.

Editing by Reiner Simanjuntak