"Pertamina will minimally hold 51 percent."Jakarta (ANTARA News) - Deputy minister of energy and mineral resources Rudi Rubiandini assured here on Monday that Pertamina would hold a majority participating interest of between 51 and 70 percent in the Mahakam oil and gas field in East Kalimantan.
"Mahakam has always been for Pertamina. Later, Pertamina will participate in its management holding minimally 51 percent and maximally 70 percent shares," he said after a meeting with House of Representatives` Commission VII members.
He said the 70 percent shares include the shares to be allocated for regions.
"So, Pertamina will minimally hold 51 percent and along with regions will hold maximally 70 percent shares," he said.
The rest 30 percent participating interest meanwhile will remain to be held by Total E&P or along with other contractors, he added.
Total`s presence, he said, is still needed to provide funds and technology.
To assure production sustainability Total will still be the operator of Mahakam for the first five years, he said adding "later it will be operated by Pertamina."
Pertamina, the state-owned oil and gas company, has already formally applied to manage the Mahakam Block after Total E&P Indonesie`s contract expires in 2017.
Total first signed the contract for the management of Mahakam on March 31, 1967 for a 30 year period.
On March 31, 1997 the contract was extended for 20 years more and it would expire on March 30, 2017.
Besides Total that holds 50 percent shares and becomes its operator there is also Inpex Corporation in the Mahakam Block that holds the rest 50 percent shares.
Until October this year Total has produced 1,9156 million cubic feet of gas and 67,478 barrels of oil per day.
The Mahakam Block is estimated to hold 17 percent of proven national gas reserves or 12.7 trillion cubic feet.
(T.K007/H-YH/O001)
Editor: Priyambodo RH
Copyright © ANTARA 2012
