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Govt challenges Pertamina to take over Mahakam block
Five ministers held a meeting in Jakarta on Saturday to discuss the possibility of transfering control of the gas-rich Mahakam Block in East Kalimantan to state-owned oil and gas company PT Pertamina from French energy giant Total E&P Indonesie and Japanâs Inpex Corp
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F
ive ministers held a meeting in Jakarta on Saturday to discuss the possibility of transfering control of the gas-rich Mahakam Block in East Kalimantan to state-owned oil and gas company PT Pertamina from French energy giant Total E&P Indonesie and Japan's Inpex Corp.
The ministers outlined three requirements for Pertamina to take over the block.
'Pertamina should guarantee that the gas output will not decrease after it is taken over,' Coordinating Economic Minister Sofyan Djalil said as quoted by tempo.co on Saturday after a closed door meeting with Coordinating Maritime Affairs Minister Indroyono Soesilo, State-Owned Enterprises Minister Rini Soemarmo, Energy and Mineral Resources Minister Sudirman Said, Deputy Finance Minister Mardiasmo and Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi.
Second, Sofyan said the government wanted to ensure that the nation's income would not be affected during the transitional period.
'And third, we want Pertamina and Total to discuss the transfer of technology during the transitional period,' he continued.
During the meeting, he said that a number of representatives from Pertamina had presented their plans on the country's biggest gas block.
'After listening to their presentation, I think they have the capacity to control the block,' he noted.
The production sharing contract for the Mahakam Block was signed in 1967 and was extended in 1997 for a 20-year period. (nfo)(++++)
