LNG project developer Inpex signed a number of agreements with Pertamina and Total to transfer operation of the Mahakam block offshore Indonesia.
This is one of the steps required to begin discussions concerning participation in the block from January 2018.
Inpex is currently engaged in the development and production of oil and natural gas in the Mahakam block in partnership with Total, the operator.
Both Total and Inpex are pursuing discussions with Pertamina and the Indonesian government authorities with the aim of participating in the Mahakam Block after the current production sharing contract (PSC) expires at the end of 2017.
The agreements enable the transfer of operatorship in the block from Total to Pertamina.
Inpex and Total currently hold 50 percent of participating interest in the Mahakam block. The joint venture made a number of discoveries since 1966 when Inpex entered into its current PSC with the Indonesian government.
Natural gas from the block is supplied to the Bontang LNG plant while the oil and condensate are delivered to refineries and power companies in Japan.