TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Sudirman Said hopes PT Pertamina (Persero) and Total E&P Indonesie can soon finalize the discussion on the management transfer of the Mahakam Block. He said that doing so will minimize the risk of oil and gas production decline.

The minister said that once the regulation on Mahakam Block's manager is issued next week, the government will give Total and Pertamina about a month to discus necessary matters.

"By March or April, negotiations will be completed and the transition process can start," he said in a discussion with the media at Hotel Dharmawangsa yesterday.

Sudirman is confident that Pertamina will be able to manage the block after the production-sharing contract between the government and Total expires in 2017. Sudirman said he doesn't know if Pertamina will be the sole operator of the oil block located in the Mahakam River delta. According to the Minister, that decision is up to Pertamina and Total.

Pertamina's upstream director Syamsu Alam said they are ready to manage the Mahakam block during the transition period. He also guaranteed that the discussion will be completed in a short time.

Once they receive a letter of appointment as the official operator of Mahakam block, Syamsu said Pertamina will hold discussions with Total, such as on technology transfers and human resources.

Syamsu said his division has earmarked US$25.2 billion to manage the Mahakam block for the next 20 years.

DEVY ERNIS