Pertamina's Investment in Mahakam Approved

The Ministry of Energy and Mineral Resources finally approved the amendment to the Mahakam Block contract. With this amendment, PT Pertamina can enter the Mahakam Block before the expiration of the old operator contract. Currently, the Mahakam Block is managed by PT Total E&P Indonesie and will expire next year.

PT Total E&P Indonesie

The Minister of Energy and Mineral Resources, Ignasius Jonan, said that he approved the amendment to the production sharing contract for the Mahakam work area. The amendment to the cooperation contract was signed by SKK Migas and PT Pertamina Hulu Mahakam, as new investors for the Mahakam Block, Tuesday (25/10) at the Ministry of Energy and Mineral Resources office.

Blogger Agus Purnomo in SKK Migas

Jonan said that currently, the Mahakam Block gas production reaches 1,747 mmscfd and oil-condensate 69,186 bpd. With this amendment, it is hoped that the Mahakam Block production in 2018 can be maintained. Understandably, with this contract amendment, Pertamina can start investing in the Mahakam block starting in 2017. 

All costs incurred by Pertamina in the transfer of management will be included in cost recovery in 2018. Deputy Minister of Energy and Mineral Resources Arcandra Tahar said, with the approval of the Mahakam Block contract amendment, Pertamina could participate in the discussion of the work program and project budgeting or work program and budget (WP&B) in 2017.

The discussion will be held on 24-25 November 2016. The WP&B will agree on the activities that will be proposed by Total E&P Indonesie, as the operator and Pertamina as the investor. Arcandra said that so far PT Total E&P Indonesie plans to invest in drilling in six wells and Pertamina in 19 wells. Pertamina Director Dwi Soetjipto said that to drill 19 wells, Pertamina would invest US$ 180 million.

Because this is indeed a block where there is a decline in production, if nothing is done, the decline will be very drastic. We invest early so that the decline is not too drastic. The supervision is from SKK Migas," said Dwi.

President Director of Total E&P Indonesie Hardy Pramono said that with this drilling activity, his party would maintain production as well as possible. Hardy said the gas production target in 2017 was 1.4 to 1.45 BCF and condensate oil was around 50,000 BPD.

Kontan, Halaman : 15, Rabu, 26 Okt 2016