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IOCs at loggerheads with Pertamina over Mahakam

Pertamina will take over the Mahakam block in 2018, but current owners Total and Inpex look unlikely to stick around to help Pertamina will take over the Mahakam block in 2018, but current owners Total and Inpex look unlikely to stick around to help.
By Damon Evans 16 May 2016 Asia Pacific / Exploration & Production 0 20302
An offshore rig at the Mahakam Block. Total and Inpex’s PSC wil expire in 2018. (SKKMigas)

Total and Inpex are unlikely to participate in Indonesia’s giant Mahakam Block once Pertamina takes over as operator in 2018 if the NOC maintains its present negotiating strategy, industry sources have told Interfax Natural Gas Daily.

French major Total and Japanese operator Inpex each hold 50% in the Mahakam production-sharing contract (PSC), which will end in late 2017. Following the expiration of the PSC, Pertamina will own 100% of the block, which has been producing since 1967. However, it is allowed to divest...