Pertamina, local govts to get 70% stake in gas-rich Mahakam - Indonesia
19 June 2015, 10:27
0
134
Pertamina, local govts to get 70% stake in gas-rich Mahakam
The government had decided that state oil and gas company Pertamina and local governments will control a 70 percent stake in Mahakam Block in East Kalimantan, according to Energy and Mineral Resources Minister Sudirman Said.
Sudirman announced on Friday that after the block's contract expired in 2017, Total E&P Indonesie, the current operator, and Inpex would have a combined 30 percent stake in the country's biggest source of gas.
"Pertamina's stake is greater as it will become the operator of the block. Local administrations will also have participating interests. Combined, they will have a 70 percent stake," he said.
Under a production-sharing contract set to expire in 2017, France's Total currently holds a 50 percent participating interest while Japan’s Inpex controls the other 50 percent.
The government had decided that state oil and gas company Pertamina and local governments will control a 70 percent stake in Mahakam Block in East Kalimantan, according to Energy and Mineral Resources Minister Sudirman Said.
Sudirman announced on Friday that after the block's contract expired in 2017, Total E&P Indonesie, the current operator, and Inpex would have a combined 30 percent stake in the country's biggest source of gas.
"Pertamina's stake is greater as it will become the operator of the block. Local administrations will also have participating interests. Combined, they will have a 70 percent stake," he said.
Under a production-sharing contract set to expire in 2017, France's Total currently holds a 50 percent participating interest while Japan’s Inpex controls the other 50 percent.
The government has decided on a three-year transitional period before Pertamina entirely takes control of the block, which has been in operation since the 1970s.
