Inpex of Japan revealed its intention to sign a heads of agreement with Indonesia’s Pertamina and Total on participating in the offshore Mahakam Block beyond 2018.
In June 2015, Indonesia’s Ministry of Energy and Mineral Resources said the state-owned Pertamina will become the operator of the Mahakam Block with a 100 percent interest but it could reduce its share to other parties.
Currently, Total, the operator of the block owns 50 percent interest with Inpex holding the remaining 50 percent share.
Inpex said in a statement on Monday that, together with Total, it has engaged in talks with Pertamina and the Indonesian government authorities targeting extension or renewal of the current production sharing contract that ends in 2017.
Under the new HoA, discussions will be held over the Mahakam Block operatorship transfer from Total to Pertamina, as well as on the participation of Total and Inpex in the block after 2018.
Inpex added that the gas recovered from the field is delivered to the Bontang LNG facility.
LNG World News Staff