Pertamina Becomes Operator of Mahakam Block
Pertamina Hulu Mahakam, a subsidiary of Indonesian state owned Pertamina, has as expected taken over the operatorship of Mahakam block from French Total and Japanese Inpex, Indonesian upstream oil and gas regulator SKKMigas said January 1.
The Mahakam block is one of the largest gas producing areas in Indonesia with 695 wells in operation. At the end of December 2017, Mahakam block production was 1,286mn ft3/d of gas.
Total and Inpex have operated the block for the last five decades.
Most gas from Mahakam is supplied to Indonesia's giant Bontang LNG export plant, and then shipped as LNG to customers in Japan and elsewhere. Arrangements for the transfer of operatorship were prepared long in advance.
Head of SKK Migas Amien Sunaryadi said the gas and condensate output from the Mahakam block is very important for the government in meeting the target of state revenue from upstream oil and gas sector.
Inpex said December 25 that it would continue talks, alongside Total, with Pertamina and the Indonesian government authorities with the aim of participating in the block under the new Mahakam production sharing contract (PSC) that entered into force January 1 - but meanwhile would also surrender and return the Inpex Attaka Block to the Indonesian government with the expiration of the current PSC at the end of 2017. The Attaka Unit is a unitised area consisting of sections of the Inpex Attaka Block and the adjacent East Kalimantan Block to the north.