PT Pertamina Should Have Majority of Mahakam Block

By : Hariyanto And Aldo Bella Putra | Friday, September 29 2017 - 18:00 IWST

Anjungan di Blok Mahakam (ist)
Anjungan di Blok Mahakam (ist)

INDUSTRY.co.id - Jakarta - Energy and Mineral Resources Minister Ignasius Jonan affirmed that PT Pertamina (Persero) must control at least 51 percent or controlling majority of shares in Mahakam block, East Kalimantan.

"Pertamina must own 51 percent of the shares, while the remaining 10 percent is for regional ownership," said ESDM Minister in Jakarta on Thursday (28/9/2017)

As per the rules, as much as 10 percent of the "Participating Interest" (PI) or shareholding share must be submitted to the region. If 10 percent is owned by the region and Pertamina is required to own 51 percent then the remaining 39 percent stake in Mahakam block.

The 39 percent problem is that the Government fully surrendered to PT Pertamina, whether to "share down" with other companies or not. It will be agreed "business to business" (b to b).

In addition, the Government also requested two things to Pertamina related to the Mahakam Block. The first "cost recovery" or cost of production should not be greater than the cost of the current operator, Total E & P.

Second, the oil and gas production produced by Pertamina will not be less than that produced by Total E & P at this time. Even if it decreases it should be discussed with the government first in order to provide logical certainty of the achievement of production.

PT Pertamina (Persero) through Pertamina Hulu Mahakam has been appointed by the government to be the manager of the Mahakam Block working area effective January 1, 2018, after the expiry of Mahakam's Production Sharing Contract (PSC) in the management of Total E & P Indonesie by the end of 2017.

At the end of 2017, Total E & P Indonesie agreed to terminate the contract with Mahakam Block, its continuation as operator or still have shares will be discussed with PT Pertamina in a "b to b" manner. (Ant)

News Comment

Today's Industry

FeedsFloor

Kamis, 28 Mei 2020 - 16:15 WIB

PATA and FeedsFloor Sign Organisational Partnership

The Pacific Asia Travel Association (PATA) is pleased to announce a new organisational partnership with FeedsFloor, a digital platform that enables clients to create and manage various event-related…

Veolia Water Technologies

Kamis, 28 Mei 2020 - 15:45 WIB

Veolia Water Technologies & Urban Utilities to Install Asia Pacific’s First Full-Scale Sidestream Mox Treatment Plant

Veolia Water Technologies and Urban Utilities are working to install Asia Pacific’s first full-scale sidestream ANITA Mox treatment plant this year. A first-of-its-kind in Australia, this…

HackerOne (Images by Tekno Tempo.co)

Kamis, 28 Mei 2020 - 15:15 WIB

The Global Community of Hackers Uncovered 170,000 Vulnerabilities

A bounty — or bug bounty — is a monetary award given to a hacker who finds and reports a valid security weakness to an organisation so it can be safely resolved. With nearly half of bounty…

HIMA (Photo by Rail Solutions Asia 2019 - German Pavilion)

Kamis, 28 Mei 2020 - 14:29 WIB

How to Keep Your Plant Running

Even with minimum internal staffing levels, plants can operate safely. The number of employees required onsite at any one time depends, of course, on the size and complexity of the plant. Even…

OSSRA (Photo by Synopsys)

Selasa, 26 Mei 2020 - 12:15 WIB

Key Findings from The OSSRA 2020 Report

Our 2020 OSSRA infographic shows key findings and open source trends from the Synopsys Open Source Security and Risk Analysis report