Total still undecided over participation in Mahakam
Wednesday, April 13 2016 - 01:15 AM WIB
French firm Total SA remains undecided whether they will participate as a minority shareholder in Mahakam block in East Kalimantan province in partnership with state owned oil and gas firm PT Pertamina (Persero) but it promised to assist a smooth transfer of the block to Pertamina.
The firm made a statement during a recent courtesy call at the ministry of energy and mineral resources.
?Our guests from Total EP International highlighted two points. First, Total EP adheres to the regulation, is committed to ensuring a smooth transition in line with its obligations. Human resources and data will be fully transferred (to Pertamina). They even said their headquarters may continue providing service (to Mahakam) on terms agreed upon by Pertamina,? Minister of Energy and Mineral Resources Sudirman Said said during a hearing with the House of Representatives on Tuesday.
The second point highlighted by Total is about the minority interest of 30 percent offered by Pertamina to the firm and its current partner Inpex Corp. Pertamina has been given right by the government to take over the block after the current contract held by Inpex and Total expire at the end of 2017. Pertamina plans to keep 70 percent of the block.
?According to them, they continue studying the commercial aspects of the offer. If it is impossible to join (Pertamina in the block) on commercial reason, they will not join. They however believe that Pertamina is able to become a good operator of the block whether or not Total stays in the block (as partner),? Sudirman said.
Editing by Johannes Simbolon