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Indonesia to complete takeover of Mahakam Block on Jan. 1
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An offshore oil rig in the Mahakam Block. (Tempo/SG Wibisono)
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tate-owned energy firm Pertamina will complete the takeover of the Mahakam Block in East Kalimantan on Jan. 1, 2018 from Total E&P Indonesie and Inpex Corporation, the companies that managed the block since 1966.
Pertamina’s subsidiary, Pertamina Hulu Indonesia, president director Bambang Manumayoso assured the smooth takeover of the block, saying that his company had prepared for the continuity of the block's production.
“A number of preparations have been made, including the transfer of workers from Total E&P Indonesia,” he said in Jakarta on Wednesday as quoted by tempo.co, adding that 98.23 percent of Total’s workers would join Pertamina Hulu Indonesia.
Bambang said Pertamina had also drilled 14 wells out of the targeted 15 wells in 2016. He said his company could also cut drilling costs by 23 percent from the targeted spending.
He also claimed that the drilling time was 25 percent faster. “We believe we can [takeover the block]. We have proven that we can carry out drilling as targeted that is more cost efficient and faster,” he added.
Previously, Pertamina said it was preparing Rp 24.3 trillion (US$1.8 billion) to start managing the Mahakam oil and gas block.
Bambang said his company would allocate $700 million in investment and $1.1 billion in operational funds, all of which will come from internal funds. (bbn)
