TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Ignasius Jonan hoped that Total E & P Indonesie to continue investing by maintaining partnership with state-owned oil company Pertamina in managing Mahakam block as the French company contract ends in 2017.
"I have spoken to Total to speak with Pertamina and the [Special Task Force for Upstream Oil and Gas Business Activities]. Pertamina can offer 39 percent shares at maximum," Jonan said on Friday, March 10, 2017.
Jonan expected that the Mahakam block can continue to maintain its production capacity although the wells located in the region are not new.
Jonan added that will also allow Pertamina to operate the block together with Total. "If Total would like to offer joint operation, or Total will continue operating or other options. I think the personnel would not need to be replaced," Jonan said.
Total Indonesia President Director Arividya Noviantor said that the company has not made a decision on participating in managing the Mahakam block. “No decisions yet,” Arividya said to Tempo.
Jonan also mentioned that Pertamina will have to sell 10 percent of its share ownership over Mahakam block to the East Kalimantan Provincial Government. Based on Energy and Mineral Resources Regulation No. 37 of 2016, block operators can cover for regional government’s share purchase by applying zero interest rate while regional government can pay the installment through oil and has profit share. "Ten percent of [Pertamina's] share must be given to the regional government," Jonan said.
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