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President Widodo will have the last word about Mahakam Block development

JAKARTA ( – Five cabinet ministers of the Joko Widodo government held a meeting on Saturday afternoon to discuss about the fate of Mahakam Block operatorship, post 2017. The meeting discussed about the proposal of Pertamina to develop the block and the future development of the block.

The meeting was attended by Minister for Energy and Mineral Resources Sudirman Said, Coordinating Minister for the Economy Sofyan Djalil, Coordinating Minister for Maritime Affairs Indroyono Soesilo, Finance Minister Bambang Brodjonegoro and State Enterprise Minister Rini Soemarno.

The ministers however yet to make final decision about the Mahakam Block operatorship, once the contract of existing operator Total E&P Indonesie expired at end March 2017.

Minister Djalil said the results of the meeting will be reported to President Joko Widodo and will be further discussed at the cabinet ministers level.

Sofyan Djalil said that the transfer of operatorship must be undertaken carefully to ensure that the state revenues is maintained and production of the block would not decline. The minister’s statement indicated that the existing operator may still be involved in the development of block. The Mahakam block is currently operated by Total E&P Indonesia along with its non-operating partner Inpex Corporation of Japan.

Sofyan Djalil told reporters after the meeting that Pertamina is given opportunity to discuss with existing operator about various issues, including about transition period and human resources.

He however said the government is yet to discuss about the details of share ownership, how much Pertamina will have shares and whether existing operator will participate in the future development of Mahakam Block.

“It is not discussed yet. In principle, Pertamina will have majority shareholder,” Minister Djalil said. (*)


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