Total, Inpex to equally divide 30% stake in new Mahakam PSC
Thursday, December 17 2015 - 04:29 AM WIB
Total EP Indonesie, a unit of French firm Total SA, and Japan?s INPEX Corporation will equally divide the allocated 30 percent participating interest in the Mahakam block under a new production sharing contract (PSC), according to a senior official of Total.
Director of Total EP Asia Pacific, Olivier Cleret de Langavant said that if his company decides to continue its participation in the Mahakam block, it would equally share the 30 percent allocated shares in the block with Inpex, meaning a 15 percent stake each.
"But if we were both going to join, depends on the economics of the new PSC," he insisted.
Olivier added that Total would like to continue its participation in the Mahakam as long as it benefits the company.
?Investment is becoming more difficult. If we have good reason to keep investment in Indonesia, and we want to have a good reason to invest in Indonesia, we will do it. But the situation, the environment could be a concern. The terms of the PSC are an important element,? Olivier pointed out.
The commitment of Total and Inpex is contained in the commercial agreement and included in the Heads of Agreement (HoA), which was signed Wednesday.
Minister of Energy and Mineral Resources Sudirman Said stated that Total and Inpex have the rights to see whether the new PSC is considered quite justified for them to continue the cooperation. "That is a normal commercial consideration," Sudirman said.
State-owned oil and gas firm Pertamina has been assigned by the government to take over the ownership of the Mahakam block after the expiry of Total and Inpex?s contract on the block at the end of 2017.
Pertamina has agreed to allocate 30 percent interest in the block to the two firms.
Sudirman said that the new PSC for Mahakam block in East Kalimantan is expected to be signed end of this year.
Editing by Reiner Simanjuntak