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Pertamina allocates US$180m to develop Mahakam block
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Workers are seen on an offshore rig belonging to Pertamina Hulu Energi (PHE) 24 in East Java’s Madura waters on Oct. 12. (Antara/Zabur Karuru)
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tate-owned energy giant Pertamina is gearing up to invest up to US$180 million in the gas-rich Mahakam block, after obtaining the government’s approval for the block’s production-sharing contract amendment.
The amendment was signed by Pertamina’s subsidiary, Pertamina Hulu Mahakam (PHM), and the Oil and Gas Regulatory Special Task Force on Tuesday.
Wianda Pusponegoro, Pertamina spokeswoman, said the agreement allowed the state-owned oil and gas producer to start operations next year.
“This means Pertamina can start operations through the block’s current operator Total [E&P Indonesie] commencing from 2017, but Pertamina will bear all of the investment costs,” she told The Jakarta Post on Wednesday in Jakarta.
PHM is currently finalizing the work program and budget (WP&B) for the Mahakam block. The firm plans to drill 19 wells with an investment value amounting to $180 million.
Energy and Mineral Resources Minister Ignasius Jonan said the amendment approval was crucial to provide legal certainty on the transition of the block operation.
“This amendment also helps to maintain oil and gas production and also gives legal certainty in the transition process from the existing operator to Pertamina,” he said. (win/ags)
