Total still reviewing various conditions regarding future role in Mahakam block

By Febry Silaban

Total EP Indonesie, a subsidiary of French oil and gas firm Total SA, stated that it has not yet decided whether to participate in managing the Mahakam block after its current contract expires at the end of 2017.

The government has given the right to manage this block to state owned oil and gas firm PT Pertamina (Persero) starting 2018.

Vice President for Human Resources, Communications, and General Services at Total EP Indonesie Arividia Noviyanto said that Total is still reviewing various conditions before making decision including oil price, field condition in the future, and the terms and conditions of the new production sharing contract of the block.

"Moreover, with oil prices and the current condition, we?re still making further study to see whether we can come with a participating interest of 15 percent or not," he said.

Total and Pertamina have intensified talks on the transfer of operatorship of the Mahakam block from the former to the latter, hoping to reach transfer agreement in June of this year. Talks have focused on issues ranging from the transfer of data, knowledge and employees. The issue of Pertamina participating in the transition period next year has also been touched.

Arividia added that the issue of Total?s future participating in the block would not affect discussion about the block?s operatorship transfer to Pertamina. "Total is fully committed in order for the operatorship transfer to go well. As a prudent and professional operator, we want the operation of Mahakam block after 2017 to go smoothly," he said.

Editing by Reiner Simanjuntak