Total to Hold Talks with Pertamina on Mahakam Block

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  • TEMPO.CO, Jakarta - Total E&P Indonesie is ready to discuss the management of Mahakam Block with PT Pertamina. The government will hand over Mahakam Block management and all cooperation negotiation with Pertamina in 2017.

    “We are ready to discuss the continuation of Mahakam Block management,” said Hardy Pramono, president and general manager of Total E&P Indonesie, on Tuesday.

    Hardy said is company will present its expertise in the exploitation and exploration of oil and gas in Mahakam Block to give large financial profits to the government.

    However, Hardy said the continuity of the cooperation depends on the joint agreement between Total E&P Indonesie and Pertamina. The agreement will discuss the profits received by Total and Inpex.

    “It is now too early to discuss an agreement and company’s participation. However, we are prepared to do the best to realize this joint agreement,” said Hardy.

    So far, Pertamina has offered to share 30 percent of Mahakam Block’s shares to Total Indonesie and Inpex with share down system.

    Total E&P Indonesie’s production supplies 80 percent to the gas processing industry from Badak LNG Bontang refinery and Mahakam Block’s production reaches 1,761 Bcf/d and 67,60 BOD of oil and condensates.

    Total manages 107 old wells as well as 111 wells that are still in development and employs at least 20,000 employees.

    Total contributes Rp830 trillion to state revenue and 80 percent of Mahakam Block’s production is given to the state.