Total, Inpex told to resume talks with Pertamina over Mahakam block
Tuesday, August 15 2017 - 05:05 AM WIB
Total Indonesie and Inpex Corp have been asked by Minister of Energy and Mineral Resources Ignasius Jonan to resume talks with state-owned oil and gas firm PT Pertamina for possible cooperation in the development of the Mahakam block after the current contract of the two firms expire at the end of this year.
?We have been asked to hold discussions again with Pertamina within the next few weeks, and then report again to the minister,? said Vice President of Inpex, Nico Muhyidin to Petromindo.com on Tuesday.
Inpex and Total met with Jonan and Deputy Minister of Energy and Mineral Resources Arcandra Tahar on Monday. ?Yesterday, (we) discussed technical issues, how to maintain production (of Mahakam block), prevent the cost per barrel from rising, about reserves and how to develop it,? he added.
Inpex currently holds a 50 percent interest in the Mahakam block, in East Kalimantan, while Total holds the balance as the operator of the block.
The government has decided to hand over the Mahakam block to Pertamina after the current contract of Total and Inpex expires at the end of this year. But the government is also hopeful for the two foreign firms to continue participation in the development of the block under a new contract with Pertamina as operator.
Total and Inpex have demanded a 39 percent interest in the block as part of conditions for their continued participation, but Pertamina has insisted that it would only be willing to allocate up to 30 percent shares.
Jonan indicated in June for the possibility of Total and Inpex obtaining up to 39 percent interest in the Mahakam block.
Editing by Reiner sanjuntak