Currently the Mahakam block is managed by a French oil company, Total E & P Indonesie, that holds 50 percent shares, with the other 50 percent owned by Japanese Inpex Corporation. The Mahakam cooperation contract with Total will end in 2017 after 50
Depok (ANTARA News) - Professor of International Law from the University of Indonesia (UI) Hikmahanto Juwana said that Mahakam gas block should be returned to Indonesia after its contract by foreign companies expires in 2017.

"After the blok`s contract to Total has expired, the Ministry of Energy and Mineral Resources (ESDM) must be ready to take it over," said Hikmahanto here Friday.

He said that in this context the Ministry of Energy and Mineranl Resources has an obligation to create conditions encouraging Indonesia, replacing the role of French oil company Total E&P Indonese.

"If not then there will be a suspicion to the Energy and Mineral Resources Minister is only a puppet for multinational companies who works on their behalf," he said.

Therefore the government should be in favor of what people aspirated, the policy to provide contract extention to foreign investors will be considered as the impartiality of the government to the people of Indonesia, Hikmanhanto added

Hikmahanto also not surprised about the public insists to label President Susilo Bambang Yudhoyono as the neo-lib and his Democrat Party is shunned because of the cabinet`s ministers is often not favor the national interest.

According to him as Minister of Energy and Mineral Resourcesj Jero Wacik should take the momentum for the revival of Indonesia to take what they were entitled, as agreed in the agreement.

Hikmahanto said that Minister Jero Wacik`s information related on Mahakam block that demands Pertamina seen in terms of business as he was not the Minister of Energy and Mineral Resources which is the regulators in the Energy field.

He considered the appropriate to assess the economic business of the Mahakam block is the Minister of State`s Owned Enterprises as shareholders and directors of the state`s oil and gas company Pertamina

"The State`s Owned Enterprise Minister should honor the agreements that have been made between the Government of Indonesia with Total," he said.

Currently the Mahakam block is managed by a French oil company, Total E & P Indonesie, that holds 50 percent shares, with the other 50 percent owned by Japanese Inpex Corporation.

The Mahakam cooperation contract with Total will end in 2017 after 50 years.

The first contract was signed March 31, 1967 for a period of 30 years.

On March 31, 1997 it was extended again for 20 years and will expire on March 30, 2017.

The current production level of the Mahakam Block is approximately 65,000 barrels of oil per day and 1700 MMSCFD gas.(*)

Editor: Heru Purwanto
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