Mahakam Block Management Remains Undecided

TEMPO.CO, Jakarta – The Ministry of Energy and Mineral Resources remain still opens the door for foreign oil and gas companies to manage the Mahakam block, with regards to Japan Prime Minister Shinzo Abe's request to President Joko Widodo to extend Inpex Corporation's contract as one of the block's operators.

"If the President agrees, we will agree as well. Everything will be decided in April," said the ministry's upstream oil and gas director Naryanto Wagimin on Wednesday, March 25.

Abe has pecifically asked Widodo to allow Inpex to keep its 50 percent ownership in the Mahakam block through a contract extension. The block is currently managed by Inpex and France-based oil contractor Total E&P Indonesia with a 50:50 stake portion.

However, the government had said that they will give state oil and gas company PT Pertamina to manage the block fully. But recently the government returned Pertamina's proposal, citing how the Mahakam block's economic value is affected by global oil price fluctuations.

Naryanto said he doubts Pertamina's ability to have 100 percent control over the block's management. "Pertamina can still work with other parties," he said.

Meanwhile, Pertamina's upstream director Syamsu Alam said the company is waiting for whatever decision the government comes up with regarding Inpex's request. "We will follow whatever the government decides." he said.

ROBBY IRFANY