ID :
71843
Thu, 07/23/2009 - 20:35
Auther :
Shortlink :
https://www.oananews.org//node/71843
The shortlink copeid
GOVT TO MAXIMIZE SHARE PORTION IN MAHAKAM BLOCK
Jakarta, July 23 (ANTARA) - The government will maximize its national share portion in the extension of the work contract of Total E&P Indonesie for the Mahakam Block gas field, an oil official said.
Head of the Upstream Oil and Gas Regulating Agency (BP Migas) R Priyono said here on Thursday that his side would soon start discussing intensively the extension of the contract to produce gas with Total E&P Indonesie.
"We will discuss it seriously after we have held the presidential elections," Priyono said. But he said that BP Migas had not set a specific dateline for the conclusion of the contract extension for the Mahakam Block gas field.
"The main point is that we want to reap a maximal profit as soon as possible," he said.
Priyono added that even though it was holding a negotiation with Total, it was not automatically that the French company would obtain a work contract extension.
"It would depend on what they offered for the interest of the state," the BP Migas chief said.
He said that the maximizing of national portion would be done in the form of increasing the government's participating interest and the local contents of projects done by the operators.
State-owned oil and gas firm Pertamina has expressed its interest to manage the Mahakam Block and has held negotiations with Total.
The Makam Block work contract expired for 30 years and was signed with Total on March 31, 1967.
The contract was extended for another 20 years on March 31, 1997 and will expire on March 31, 2017.
Based on law No. 22 / 2001 on Oil and Gas, companies exploiting a gas block could extend their contracts for another term 10 years before the contracts expire.
In this case, Total could propose an extension since 2007. Besides Total which owns 50 percent, Inpex Corperation also owns 50 percent. ***
Head of the Upstream Oil and Gas Regulating Agency (BP Migas) R Priyono said here on Thursday that his side would soon start discussing intensively the extension of the contract to produce gas with Total E&P Indonesie.
"We will discuss it seriously after we have held the presidential elections," Priyono said. But he said that BP Migas had not set a specific dateline for the conclusion of the contract extension for the Mahakam Block gas field.
"The main point is that we want to reap a maximal profit as soon as possible," he said.
Priyono added that even though it was holding a negotiation with Total, it was not automatically that the French company would obtain a work contract extension.
"It would depend on what they offered for the interest of the state," the BP Migas chief said.
He said that the maximizing of national portion would be done in the form of increasing the government's participating interest and the local contents of projects done by the operators.
State-owned oil and gas firm Pertamina has expressed its interest to manage the Mahakam Block and has held negotiations with Total.
The Makam Block work contract expired for 30 years and was signed with Total on March 31, 1967.
The contract was extended for another 20 years on March 31, 1997 and will expire on March 31, 2017.
Based on law No. 22 / 2001 on Oil and Gas, companies exploiting a gas block could extend their contracts for another term 10 years before the contracts expire.
In this case, Total could propose an extension since 2007. Besides Total which owns 50 percent, Inpex Corperation also owns 50 percent. ***
