JAKARTA, Indonesia – Indonesia’s state-owned Pertamina, in concert with local governments, will become operator of the Mahakam block offshore East Kalimantan when existing contracts expire at the end of 2017.
The Indonesian government has announced its intentions to grant Pertamina a 70% stake in the Mahakam block, Indonesia’s largest oil and gas block. The current operators of the block are Total SA and Japan-based oil firm Inpex Corp., each owning a 50% stake.
The decision to keep Total and Inpex as partners for operations at the block is therefore considered a good one as it is expected to ensure continuity of production activities at the site. Existing workers at the block will not be fired but instead are to be transferred to Pertamina.