Pertamina to Manage Mahakam Block

TEMPO.CO, Jakarta - Widhyawan Prawiraatmaja, the head of performance controlling unit at the Energy and Mineral Resources (ESDM) Ministry, said the government will grant Pertamina the Mahakam Block management right.

“We grant [Mahakam Block] to Pertamina. Please optimize it for the state’s interest,” Widhyawan said on Friday at the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) office on Friday, November 21, 2014.

Widhyawan and his team at the ESDM Ministry were currently reviewing 19 oil and gas contracts that would expire within the next two or three years, including those in the Mahakam Block.

According to Widhyawan, the official contract of the Mahakam Block granted to Pertamina will be signed by ESDM Minister Sudirman Said, and Pertamina will own the majority of shares in Mahakam.

Widhyawan added that the ministry was currently waiting for Pertamina to submit its management scheme proposal. The state-owned company was allowed to cooperate with other company to manage the block, with a condition that the company must be the previous operator, which was Total E&P.

Widhyawan added that Pertamina could be the sole operator of Mahakam Block, as long as it can convince the government that its operations would provide significant benefits for the country.

KHAIRUL ANAM