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Pertamina to Operate Mahakam Block Even without Total

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29 August 2017 11:18 WIB

An offshore oil rig in the Mahakam Block. TEMPO/SG Wibisono

TEMPO.CO, Jakarta - State-owned oil company Pertamina will operate the Mahakam block even without Total E&P Indonesia.

“If it can’t be done with Total, we have no choice but to become the operator on January 1, 2018,” he said Monday in Jakarta.

Total is one of the Mahakam block’s operator. The block is also operated by Inpex Corporation. The two companies’ contract will end this year. The government will then let Pertamina operate the Mahakam block. The previous operators may rejoin the project as shareholders.

According to Arief, the cooperation with Total is not yet confirmed. Both parties have not held further talks about the acquisition of shares. Total has offered to acquire 39 percent stake in Pertamina. But the latter will comply with the Energy and Mineral Resources Ministry decree that a company may only acquire up to 30 percent stake in Pertamina.

“We [Pertamina] will follow the instruction of the previous government i.e. 30 percent. Even if we agree, it will be discussed again with Total whether the value is right,” he said.

VINDRI FLORENTIN



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