PERTAMINA TO BEGIN INVESTMENT IN MAHAKAM BLOCK

By Andi Abdussalam

Jakarta, Oct 29 (Antara) - State-owned oil and gas company Pertamina will invest in the Mahakam Block in 2017, one year before it officially takes over management of the country's major gas field from PT Total E&P Indonesie.          Officially, Pertamina will take over in January 2018, after the contract of PT Total E&P Indonesie, which has operated the gas field for 50 years, ends on December 31, 2017.         By investing earlier in the gas field, Pertamina hopes to prevent a decline in gas production when it takes over the operation. For this purpose, the government has agreed to the amendment of the Production Sharing Contract (PSC) with Total E&P Indonesie.         Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan hoped that the amendment of the PSC would have positive impact on the continuation of the Mahakam Block production. Up to the first semester of this year, the Mahakam Block's gas production was recorded at 1,747 million metric standard cubic feet per day (MMSCFD) and oil production of 69,186 barrels per day (bpd).         "President Joko Widodo provided directives that matters relating to the management transition should be prepared and completed as soon as possible. With the amendment of the PSC, Pertamina is now able to invest in the Mahakam Block during the transitional period. Later, this investment could be recognized by the Upstream Oil and Gas Operator (SKK Migas) as cost recovery," Minister Jonan said Tuesday.

MAHAKAM TAKEOVER TRANSITION EXPECTED TO RUN SMOOTHLY

by Andi Abdussalam

Jakarta, April 16 (Antara) - State-owned oil and gas company Pertamina, which has officially been appointed to take over oil rich Mahakam Block in East Kalimantan, is optimistic that the management transition will run smoothly.         Pertamina Upstream Director Syamsu Alam said on Thursday that the government has issued an official letter appointing Pertamina to manage the Mahakam Block after the contract of the current operator, Total Exploration and Production (Total E&P) Indonesie, expires in 2017.         According to Alam, Pertamina received the letter from Energy and Mineral Resources Minister Sudirman Said on Tuesday night. Pertamina will take over the gas block from Total E&P Indonesie after the French oil giant ends its contract.          Pertamina will now discuss at length the transition period with Total E&P Indonesie, Syamsu Alam added. Alam is optimistic the transition of the management of the oil block from Total E&P Indonesie and Inpex Corporation will run smoothly as his company already has experience in that field.

INDONESIAN GOVERNMENT TO TAKE OVER MAHAKAM BLOCK

By Andi Abdussalam

Jakarta, March 10 (Antara) - The government, through state-owned oil and gas company Pertamina, resolved to take over the Mahakam oil block in East Kalimantan after French company PT Total E&P Indonesie ends its contract in 2017.         "The government's plan is clear: it will give the Mahakam block to Pertamina," Widhyawan Prawiraatmadja, the head of the Performance Control Unit of the Ministry of Energy and Mineral Resources (ESDM), has stated.          Some quarters have raised doubts about the government's seriousness in taking over the oil block after its exploration by Total E&P for about 50 years.          Total Exploration and Production (Total E&P) Indonesie had been managing the Mahakam block contract since 1967. In 1997, it was extended for another 20 years, until 2017.          According to Prawiraatmadja, Pertamina will be able to operate the Mahakam block. "Pertamina will be able to operate it. One should not doubt the ability of his or her own nation," he added.

MAHAKAM BLOCK STILL HAS LARGE OIL, GAS RESERVES

By Andi Abdussalam
Jakarta, Dec 4 (Antara) - The Mahakam oil and gas block in East Kalimantan still has large reserves of oil and gas, even after being exploited by French firm Total E&P Indonesie and Japan's Inpex Corporation for some 50 years.          Total E&P Indonesie, in the remaining two years of its contract, is focusing on the field in an effort to increase its oil and gas production.      Total's oil production is currently some 66,053 barrels per day, a five percent increase from its earlier average daily production of 62,910 barrels per day. It aims to produce 1.7 billion cubic feet of gas in 2014, which will equal its gas production from a year earlier.          As it was known, Total now operates on the basis of a contract with Inpex in the Mahakam oil block. It has invested US$27 billion in exploration activities and contributed US$83 billion (Rp750 trillion) to the state.          The French multinational company was awarded the work contract for the Mahakam block in 1967 for a period of 30 years. In 1997, Total won a 20-year extension for the contract, which is now valid till March 31, 2017.