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Indonesia allows Total and Inpex to take up to 39% interest in Mahakam under new PSC

JAKARTA (RambuEnergy.com) – The Energy and Mineral Resources Ministry has made a decision to allow Total E&P Indonesie and Inpex Corp of Japan to hold 39% of participating interest in the Mahakam Block under the new production sharing contract (PSC), higher than the earlier limit of 30%.

Total E&P Indonesie has been developing the Mahakam block for over 40 years, along with its non-operating partner Inpex. Their contract expires end of this year. From Jan. 1, 2018, the Mahakam Block operatorship right will be held by Indonesia’s energy company Pertamina.

Should Total and Inpex hold 39%, Pertamina will hold remaining 51% interest and 10% by local governments in East Kalimantan.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said early this week that the energy ministry has issued a letter that will allow the existing operator to own up to 39%. (*)

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