Mahakam on the Block

IT'S high time the government gave the Mahakam concession block in East Kalimantan back to Pertamina. In many other oil- and gas-producing countries, state-owned companies stand first in line to get such concessions. This applies to new projects as well as old concessions whose contracts are expiring.

Mahakam, currently operated by Total Indonesie (France) and Inpex Corp (Japan), are the biggest producers of gas in Indonesia. Every day, no less that 1.6 billion cubic feet is pumped out of that offshore block. The production-sharing contract with Total-Inpex will end in 2017.

April 7, 2015