Mahakam Block Still in Limbo

 
Anne Aprina Priskila, Kartini L Makmur
 
As part of efforts toincrease the share of local domestic companies in the upstream oil and gas industry, state-owned oil and gas company PT Pertamina has said that it can manage the Mahakam Block independently. Pertamina has alsoconfirmedits ability to manage the Mahakam Blockwithout the participation of its existing French counterpart, Total E & P Indonesie.
 
Samsyu Alam, Pertamina’s Director of Upstream Oil and Gas Business, indicatedthat Pertamina’s confidence to be able to do so has been conveyed to the government via the Ministry of Energy and Mineral Resources(ESDM).
 
"We have sent the management proposal to the Government and are awaiting good news,"Mr. Alam said last Thursday.
 
Responding to Pertamina’s position, Sudirman Said, Minister of ESDM explained that the proposal is still being discussed. Currently, the Ministry is progressively hearing input from various parties, such as the Coordinating Ministry for Economic Affaris,and plans to make a determination in mid-March.
 
In addition, Pertamina showed its preparedness by revealing its scheme for local government participation and other related parties as part of the handover. On this issue, Widhyawan Prawiraatmadja, Head of the Performance Control Unit at the ESDM,reminded that the local government, operating as a Regional-Owned Company (Badan Usaha Milik Daerah), is entitled to 10% of total revenue.
 
In addition, Pertamina must also excludeparticipation by private companies. If these requirements are maintained, Mr. Prawiraatmadha believes that national legitimacy over the domestic upstream oil and gas industry can be strengthened.
 
In line with Mr. Widhyawan position, Dito Ganinduto, a lawmaker from Commission VII at the House of Representatives, agreesthat the handover of the Mahakam Block to Pertamina will increase the share of national companies in the upstream oil and gas upstream industry. 
 
Noteworthy also is that Mr. Ganinduto is warning the Government not to repeat the mistakes made in regard to Cepu Block’s handover to Exxon Mobile. Back then, the Government had reservations about Pertamina’s competence in producing oil due to its lack of technology. It is hoped that in this case Pertamina is considered sufficiently capable to take over the Mahakam Block and bring a happy ending to this ongoing saga.
 
(hot/kc)
 
Anne Aprina Priskila, Kartini L Makmur
 
As part of efforts toincrease the share of local domestic companies in the upstream oil and gas industry, state-owned oil and gas company PT Pertamina has said that it can manage the Mahakam Block independently. Pertamina has alsoconfirmedits ability to manage the Mahakam Blockwithout the participation of its existing French counterpart, Total E & P Indonesie.
 
Samsyu Alam, Pertamina’s Director of Upstream Oil and Gas Business, indicatedthat Pertamina’s confidence to be able to do so has been conveyed to the government via the Ministry of Energy and Mineral Resources(ESDM).
 
"We have sent the management proposal to the Government and are awaiting good news,"Mr. Alam said last Thursday.
 
Responding to Pertamina’s position, Sudirman Said, Minister of ESDM explained that the proposal is still being discussed. Currently, the Ministry is progressively hearing input from various parties, such as the Coordinating Ministry for Economic Affaris,and plans to make a determination in mid-March.
 
In addition, Pertamina showed its preparedness by revealing its scheme for local government participation and other related parties as part of the handover. On this issue, Widhyawan Prawiraatmadja, Head of the Performance Control Unit at the ESDM,reminded that the local government, operating as a Regional-Owned Company (Badan Usaha Milik Daerah), is entitled to 10% of total revenue.
 
In addition, Pertamina must also excludeparticipation by private companies. If these requirements are maintained, Mr. Prawiraatmadha believes that national legitimacy over the domestic upstream oil and gas industry can be strengthened.
 
In line with Mr. Widhyawan position, Dito Ganinduto, a lawmaker from Commission VII at the House of Representatives, agreesthat the handover of the Mahakam Block to Pertamina will increase the share of national companies in the upstream oil and gas upstream industry. 
 
Noteworthy also is that Mr. Ganinduto is warning the Government not to repeat the mistakes made in regard to Cepu Block’s handover to Exxon Mobile. Back then, the Government had reservations about Pertamina’s competence in producing oil due to its lack of technology. It is hoped that in this case Pertamina is considered sufficiently capable to take over the Mahakam Block and bring a happy ending to this ongoing saga.
 
(hot/kc)
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