TEMPO.CO, Jakarta – The Ministry of Energy and Mineral Resources said it will not involve private firms to help PT Pertamina (Persero) manage the Mahakam block in East Kalimantan. Director of Upstream Oil and Gas Djoko Siswanto said that so far Pertamina will be managing the block alone.
To maintain oil production, Total E&P Indonesia will still manage the block during the transition period. This is also decided to ensure that the transfer process goes smoothly.
Yesterday, representatives of Total and Pertamina met at the Energy Ministry building to discuss the technical transition between the two companies.
Previously, Pertamina president director Dwi Soetjipto said that once the company operates Mahakam it will manage 50 percent of Indonesia's oil and gas reserves. Pertamina currently controls just 24 percent of the national oil and gas upstream market.
The government hopes the transition process could run smoothly without interrupting fuel oil supply. Total's management contract in the Mahakam block will expire in January 2018.
ADITYA BUDIMAN | ROBBY IRFANY