Jakarta, Feb 22 (Antara) - Contestants at the ruling Democratic Party
presidential Candidate Convention have said they would end the contract
of France-based Total E&P Indonesie, operator of East Kalimantan's
Mahakam oil block, when it expires in 2017.
At least three of the 11 contestants at the convention, held in
Balikpapan, East Kalimantan, said on Saturday that if they are elected
president they wanted to hand over the operating rights of the Mahakam
Oil Block to state-owned oil and gas firm Pertamina.
Total E&P Indonesie is now focusing on oil fields it is exploiting
in an effort to increase its oil and gas production. It is working to
produce 1.7 billion cubic feet of gas in 2014, or equal to its gas
production from one year earlier.
Total's oil production is currently some 66,053 barrels per day, or an
increase by five percent of its average daily production of 62,910
barrels per day.
Hayono Isaman, one of the 11 participants in the Democratic Party (PD)
presidential candidate convention, said that Pertamina was capable of
taking over operation from Total in the Mahakam Oil Block in East
Kalimantan.
"If am elected president, I will surely entrust it to Pertamina to
operate the Mahakam Oil Block," asserted Hayono during the debates held
by PD Convention committee in Balipapan on Saturday.
Hayono was responding to a question regarding the Mahakam Block, which is operated by Total E&P.
However, Hayono Isman, who is a former sports and youth affairs
minister, said the Indonesian people should be assured that Pertamina
was able to manage the oil block.
"We have to admit that Indonesia is rather open to foreign investment.
Thus, foreign companies dominate Indonesia's economy. Therefore,
Indonesians must be able to replace them in the future," he affirmed.
In this case, an Indonesian president has a large responsibility in
exploiting natural resources properly and using them for the greatest
interest and welfare of the Indonesian people. "Thus, if I am trusted to
assume the presidential post, I will surely entrust Pertamina to
replace the foreign company in operating the Mahakam oil block," Hayono
stated.
Hayono, who is also a senior member of the Democratic Party, said East
Kalimantan was rich in natural wealth, which should be preserved as best
as possible. "It must be managed and exploited by Indonesia¿s sons,
themselves. Ahead, I want to see that Pertamina is able to operate the
Makam Block, replacing Total. I want to listen to Pertamina," he
stressed.
Pertamina should also be able to work jointly with local companies in
East Kalimantan in operating the Mahakam oil field.
"It should increase its knowledge in natural resources management. The
local companies could be in the form of a regional government-owned
company (BUMD), or a private company," he said.
In the meantime, former Indonesian ambassador to the United States Dino
Patti Djalal, who is also a contestant in the PD convention, expressed
his determination to take over the Mahakam Oil Block.
"Supposed that I am elected president, I will never hesitate to give
the management concession of the Mahakam Oil Block to Pertamina," Dino
said during the debates.
He noted that Pertamina was ready to operate the oil field because it
has Elnusa as its subsidiary, which has the expertise in the exploration
and exploitation management of oil blocks. "Pertamina's human
resources are ready for that. It is also ready in terms of financial
expertise," he remarked.
The other participant taking part in the convention debate in
Balikpapan on Saturday was Gita Wirjawan, who has resigned as a trade
minister so he might concentrate on his bid in this year's presidential
race.
He said that Indonesia should no longer extend Total's work contract
for the operation of the Makam Oil Block, which was now under the
management of PT Total E&P Indonesie. "2017 Blok Mahakam must be
returned and owned by the nation," stressed Gita during the debates.
However, he argued that the government must be responsible for the
management of natural resources for the greatest welfare of the people.
For this, it is important to work out a fair production sharing scheme
between the central and regional governments.
"It is a must to decide a fair turnout sharing scheme between the
central government and the regional government of East Kalimantan,
particularly for the people of East Kalimantan," he said.
Gita explained that the Mahakam Block is experiencing a production
decline, falling from 1.6 million barrels per day to 830 thousand
barrels. He said the cause of the decline in production needs to be
questioned.
He noted that that the next president had the responsibility to support
the development of the nation¿s oil operators to increase the country's
oil and gas production in order to achieve energy security.
According to Wikipedia, Total E&P Indonesie was established on
August 14, 1968 with its initial oil field near the Mahakam Delta. It
was strengthened with the discovery of the Tambora field in 1974 and
Tunu in 1977. The Tunu field was developed in the 1990s, serving as the
main gas supplier for Total F&P.
As it was known, Total is now operating with a contract in the Mahakam
oil block, partnering with INPEX. It has invested US$27 billion in
exploration activities and contributed US$83 billion, or about Rp750
trillion, to the state.***2***
(T.A014/INE/B003)
(EDITED BY INE)
(T.A014/A/BESSR/Bustanuddin) 22-02-2014 22:4 |
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