Off the wire
• Tokyo stocks end 0.92 pct higher on bargain hunting, weak yen  • 1st Ld: Key China-U.S. dialogue set for next week  • Feature: Nepal facing uphill task in rebuilding  • 1st LD Writethru: Heavy rains bring Mumbai to standstill  • Spotlight: Black church massacre reflects U.S. inaction on gun violence, growing racial hatred  • 33 die after consuming spurious liquor in Mumbai  • Roundup: Denmark's opposition coalition wins parliamentary election  • Sun Ke's $10.6 mln transfer fee marks Chinese player record  • Chelsea captain Terry to visit Guangzhou  • Malaysia recapture hijacked tanker, pirates flee  
You are here: 　 Home

Indonesia's Pertamina to be operator at giant Mahakam gas field : minister

Xinhua, June 19, 2015 Adjust font size:

Indonesia has decided the state firm PT Pertamina to be the operator of giant Mahakam gas block in offshore of East Kalimantan, starting on Jan. 1 2018, and control majority of shares at the field, a minister announced here.

Indonesian Energy and Mines Minister Sudirman Said disclosed that existing operator French's Total E&P Indonesie, a subsidiary of French's Total and Japanese firm, Inpex corporation will be the minority in shareholders at the Indonesia's single-largest source of natural gas, Mahakam block.

Mahakam block produced about 1.76 billion cubic feet per day ( bcfd) in 2014. The output is expected to scale up to 1.7 bcfd in 2015.

Minister Said revealed that state oil and gas company, PT Pertamina, and a local state firm in East Kalimantan province will get 70 percent of shares, and Total E&P Indonesie and Inpex will have 30 percent.

"The decision is made based on consideration that PT Pertamina must be a real operator that control majority of shares," he told a press conference at energy and mines ministry.

Next week, the government will decide the portion of participating interest for the local state company at the province, Minister Said revealed.

"President (Joko Widodo) stressed, whatever the size of the participating interest given to the provincial government, it must give benefit to the local community," he revealed.

On the same occasion, Director General of Oil and Gas at the ministry Wiratmaja Puja disclosed that under the ministerial rule number 15, 2015, the operator has 100 percent rights.

"PT Pertamina can conduct decreasing of shares of other party or shares down for the reason of bringing more advantages in business," he said.

Mahakam block is the main source of gas for Bontang LNG ( liquefied natural gas) plant in East Kalimantan province.

Indonesia is among the world's top five LNG importers despite its exports have been decreasing in recent years.

The country's gas demand is projected to keep rising in the years to come amid accelerating economic growth, in which the output from Mahakam block is expected to comply with it along with the government efforts to seek other supply sources from overseas. Endi