Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Kartini L. Makmur
With extensive oil and gas reserves, Mahakam Block continues to attract the attention of oil companies. Although having been managed by Total E&P Indonesia for nearly half a century since 1967, the current contract is set to come to an end in 2017.Despite the end of the contract fast approaching, discussions on the future of block remain in limbo. Pertamina is having problems initiating negotiations regarding a heads of agreement. One problems is that there are yet to be official instructions from the Special Unit for Upstream Oil and Gas Activities (“SKK Migas”) to start such negotiations.
This was confirmed by Syamsu Alam, Pertamina’s Director of Upstream Activities. According to him, the lack of official instructions from SKK Migas has caused Total E&P and Inpex to reject Petamina’s invitation to commence negotiations.
Mr. Alam further confirmed that the government, represented by Sudirman Said, Minister of Energy and Mineral Resources, has already notified Total E&P and Inpex to prepare for a transition of management to Pertamina. The notification was given to ensure that oil lifting volumes remains the same once the Mahakam Block is managed by Pertamina.
“The Minister has asked both companies to prepare information on a timeline, assets that will be transferred, status of workers, further exploration, and so forth,” said Mr. Alam in Jakarta on Monday.
Mr. Alam asserts that Pertamina is more than willing to maintain the production and operation of Mahakam Block. In fact, Mr. Alam emphasized that Pertamina is ready to manage the area starting 1 January 2018.
Although Pertamina is saying that the future of Mahakam Block is unclear, Minister Said guarantees that Total E&P is ready to cooperate with Pertamina in managing the area. According to him, Total E&P has confirmed its willingness to the President.
Minister Said further explained that Total E&P will keep its investment in Indonesia, with possible cooperation with national companies. These efforts, said the Minister, must be applauded as Total E&P has showed good faith while conducting its business in Indonesia.
Minister Said is also reminding regional governments to prepare themselves for changes related to the Mahakam Block. The Minister confirmed that regional governments are entitled to 10 percent of the shares in the Mahakam Block, and therefore must prepare funds to finance the operational activities.
(hot/kc)
Marcell Sihombing, Kartini L. Makmur
With extensive oil and gas reserves, Mahakam Block continues to attract the attention of oil companies. Although having been managed by Total E&P Indonesia for nearly half a century since 1967, the current contract is set to come to an end in 2017.Despite the end of the contract fast approaching, discussions on the future of block remain in limbo. Pertamina is having problems initiating negotiations regarding a heads of agreement. One problems is that there are yet to be official instructions from the Special Unit for Upstream Oil and Gas Activities (“SKK Migas”) to start such negotiations.
This was confirmed by Syamsu Alam, Pertamina’s Director of Upstream Activities. According to him, the lack of official instructions from SKK Migas has caused Total E&P and Inpex to reject Petamina’s invitation to commence negotiations.
Mr. Alam further confirmed that the government, represented by Sudirman Said, Minister of Energy and Mineral Resources, has already notified Total E&P and Inpex to prepare for a transition of management to Pertamina. The notification was given to ensure that oil lifting volumes remains the same once the Mahakam Block is managed by Pertamina.
“The Minister has asked both companies to prepare information on a timeline, assets that will be transferred, status of workers, further exploration, and so forth,” said Mr. Alam in Jakarta on Monday.
Mr. Alam asserts that Pertamina is more than willing to maintain the production and operation of Mahakam Block. In fact, Mr. Alam emphasized that Pertamina is ready to manage the area starting 1 January 2018.
Although Pertamina is saying that the future of Mahakam Block is unclear, Minister Said guarantees that Total E&P is ready to cooperate with Pertamina in managing the area. According to him, Total E&P has confirmed its willingness to the President.
Minister Said further explained that Total E&P will keep its investment in Indonesia, with possible cooperation with national companies. These efforts, said the Minister, must be applauded as Total E&P has showed good faith while conducting its business in Indonesia.
Minister Said is also reminding regional governments to prepare themselves for changes related to the Mahakam Block. The Minister confirmed that regional governments are entitled to 10 percent of the shares in the Mahakam Block, and therefore must prepare funds to finance the operational activities.
(hot/kc)