Total says it remains committed to invest in RI despite Mahakam block contract uncertainty
Friday, August 30 2013 - 01:26 AM WIB
Total EP Indonesie said that it would continue its efforts to get an extension of its existing contract in operating the gas-rich Mahakam block in East Kalimantan, in line with its ethics and good governance standards.
The local unit of France-based Total also said it remains committed in continuing investment in the Indonesian oil and gas sector, denying rumors that it was considering of leaving Indonesia if it fails to get a contract extension for the Mahakam block, which expires in 2017.
The company also stressed that it would not be engaged in illegal act to win the contract extension.
?As a multinational company, Total upholds corporate ethics, good governance, and compliance. Total will maintain its drilling commitment at the Mahakam block until the contract expires,? Total EP Indonesie Head of Media Relations, Kristanto Hartadi told Petromindo.com Friday.
Kristanto said that Total EP Indonesie currently operates 15 blocks in Indonesia including one production block, and 14 exploration blocks. ?In the 14 exploration blocks, Total will continue make exploration drilling programs. Blocks being drilled include South Mahakam, Telen, SWB Papua, Mentawai,? he said.
A source said that due to the lingering uncertainty about the future of the Mahakam block contract, Total is considering to leave Indonesia as it sets eyes on Australia and Papua New Guinea.
Meanwhile, the People?s Grand Coalition to Save the Nation (KARSN) yesterday visited the Ministry of Energy and Mineral Resources to pressure the government to hand over the Mahakam block contract to national company once the existing contract expires in 2017.
KARSN leader Din Syamsuddin said that the right to operate the block must be handed over to a national company because it has been in the hands of foreigners for 50 years, which has not benefitted the state.
Din suspected that if the government does not hand over the contract to national company, it means that that the government has received certain compensation from the foreign side.
Total and Inpex Corporation currently operate the block, under a 30-year contract signed in 1967, which was extended for another 20 years in 1997.
Editing by Reiner Simanjuntak