Partners agree on revisions to Mahakam PSC post-2018

Offshore staff

TOKYO – INPEX has signed a heads of agreement (HOA) with Pertamina and Total E&P Indonesie on the basic principles for participating in the offshore Mahakam block after 2018.

Currently Total operates in a 50-50 partnership with INPEX, developing and producing oil and natural gas. They are seeking to extend or renew the current production-sharing contract (PSC) which expires at the end of 2017.

Under the HOA operatorship will transfer to Pertamina with Total and INPEX remaining as partners on a 70-30 basis, managing activities on the block post-2018.

Since the initial PSC was signed in October 1966, the two incumbents have made discoveries in the Bekapai (oil), Handil (oil), Tambora (oil and gas), Tunu (gas), Peciko (gas), Sisi and Nubi (gas), and South Mahakam (gas) fields.

Each has produced crude oil and natural gas for more than 40 years.

Oil and condensate are shipped mainly to oil refineries and power companies in Japan by tanker from the Santan and Senipah terminals.

Most of the gas is supplied to the Bontang LNG Plant, then shipped as LNG to customers in Japan and elsewhere.

12/23/2015

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