CONTRACT OF TOTAL E&P INDONESIE, FRENCH OIL CO NOT EXTENDED

Indonesia welcome foreign companies to invest especially in Capital intensive projects such as Oil and gas, Infrastructures etc. Not to worry that Government will  never cut the contract but honor it until stated in the contract, even the new rezime, under President Jokowidodo run the country.  

Total E&P Indonesie, French oil an gas giant company explored in Mahakam block, East Kalimantan had been operated for 50 years and the contract will be due in year 2017 and the contract will be sign in 2015. Since the State oil and gas company able to manage this big exploration, Government decided not to extend the contract but hand it over to P.T.Pertamina. "We hand it over 100 %to Pertamina. It is up to Pertamina it is to be a single share holder or will need partner", Energy and Mineral resources said to Jakarta Post, March 10, 2015.

 
The block produce gas equivalent to 280.000 barrels of oil a day. Pertamina upstream Director Syamsu Alam said estimated would need around US$ 25,2 billion in investment to operate Mahakam block for the next 20 years. The block provide 1,6 to 1,7 billion standard cubic feet per day of gas and an average condensate of roughly 62.000 of oil per day.

As many as 100 wells per year are drilled in the block and around 10.000 well interventions are performed annually to maintain production. The block also requires more the 500 logistic support vessels to operate.

“The government has made a clear decision that it will give the Mahakam block to Pertamina. Regarding the percentage of ownership, we will let Pertamina negotiate [with partners], however, we want Pertamina to have majority [control],” Energy and Mineral Resources Minister Sudirman Said told reporters during a visit to Aceh on Monday.
- See more at: http://www.thejakartapost.com/news/2015/03/10/pertamina-take-control-mahakam-block-minister.html#sthash.H0NbvspI.dpuf

The block, an oil and gas field off the coast of East Kalimantan, was predicted to have oil reserves of around 1.4 billion barrels and 26 trillion cubic feet of gas when it was first discovered in the 1960s. The government signed the block’s first work contract in 1967 for a period of 30 years and extended it to 2017 - See more at: http://www.thejakartapost.com/news/2015/03/16/govt-urged-hand-over-mahakam-block-pertamina.html#sthash.0CWJE6Hq.dpuf

The block, an oil and gas field off the coast of East Kalimantan, was predicted to have oil reserves of around 1.4 billion barrels and 26 trillion cubic feet of gas when it was first discovered in the 1960s. The government signed the block’s first work contract in 1967 for a period of 30 years and extended it to 2017 - See more at: http://www.thejakartapost.com/news/2015/03/16/govt-urged-hand-over-mahakam-block-pertamina.html#sthash.0CWJE6Hq.dpuf