Japan’s Inpex said it will give up the two offshore blocks in Indonesia as the current production sharing contracts for oil and natural gas expire at the end of the year.
The company said on Monday it will surrender and return the Offshore Mahakam Block to the Indonesian government.
Effective January 1, 2018, PT Pertamina (Persero), Indonesia’s state-owned oil and natural gas company, will hold all interests in the block and take over operatorship from Total, the block’s current operator, in accordance with the new PSC.
Inpex will continue pursuing discussions, in close partnership with Total, with Pertamina and the Indonesian government authorities with the aim of participating in the block under the new PSC.
The Japanse company will also surrender and return the Attaka Block to the Indonesian government with the expiration of the current PSC at the end of 2017. It intends to undertake procedures associated with the surrender in cooperation with the Indonesian government authorities as well as Chevron, the operator of the unit that consists of Inpex Attaka Block and the adjacent East Kalimantan Block to the north.