Govt Asks Pertamina to Review Mahakam Feasibility
17 March 2015 15:14 WIB
TEMPO.CO, Jakarta - PT Pertamina (Persero) was asked to review the economical value of the Mahakam block in East Kalimantan. Naryanto Wagimin, director of upstream oil and gas at the Ministry of Energy and Mineral Resources, said the government has provided inputs to Pertamina for the purpose of reviewing the business values the company would get from operating the block once Total E&P Indonesia's management contract expires in December 2017.
Pertamina is asked to submit the amount of investment based on various assumptions of global oil prices, starting from a low US$ 40 per barrel to a high US$100 per barrel. The assessment based on the assumption has been submitted to the Ministry of Energy and Mineral Resources on Monday.
Pertamina is currently evaluating the mechanism for the management transfer period with the block's current operator Total E&P Indonesia, so that the transition process can start as soon as possible.
Pertamina's upstream director Syamsu Alam said the company wants the transition period starts before 2017.
Mahakam block currently produces 250,000 oil-equivalent barrels per day (boepd) of crude, which is about a quarter of the national output.
In addition to becoming the backbone of the national oil and gas industry, a number of local consumers also depend on Mahakam's production, including Nusantara Regas, Fertilizer Kaltim, and a number of other industries in East Kalimantan.
BISNIS INDONESIA