REPUBLIKA.CO.ID, JAKARTA -- Indonesian Oil and Gas Mining Company PT. Pertamina is prepared to take over and manage the Mahakam block by 2017, said Indonesian Minister of State's Owned Enterprises Dahlan Iskan here on Wednesday.

"I believe that Pertamina's board of directors and all its employees have great determination to take over the Mahakam block," said Dahlan.

The minister's confidence was voiced after the company's board of directors, commissioners and stakeholders expressed their willingness to take over the Mahakam Block.

"Pertamina already has experience in managing West Madura Offshore (WMO). After taking over the WMO block from CNOOC, its operating performance increased from 10,000 barrels per day to 30,000 barrels per day," said Dahlan.

Pertamina has also written to the Government, saying the company is ready, in terms of financial and technical assistance, to acquire the Mahakam block located in Kalimantan.

Currently, the Mahakam block is managed by a French oil company, Total E&P Indonesia, with ownership of 50 percent, while the remaining interest is controlled by Inpex Corporation of Japan.

The Mahakam block cooperation contract with Total E7P Indonesie will expire in 2017 after a 50 year joint venture.

According to records, the current production level of Mahakam block is approximately 65,000 barrels of oil per day and 1,700 MMSCFD of natural gas.

Related to the takeover of investment, Dahlan said the directors and commissioners have already thought of issues related to funding.

"The funding issue has no need to be questioned, Pertamina is very prepared," said Dahlan.

Ikuti Whatsapp Channel Republika