Indonesia’s state-run upstream company PT Pertamina is looking to re-engage Total and INPEX Corp. in reviving oil and gas production from the aging fields and developing new fields in the hydrocarbons-rich Mahakam Block offshore Makassar Strait.
Arcandra Tahar, the country’s junior energy and mineral resources minister, said ministry officials are in talks with Total and INPEX to divest up to 39% participating interest (PI) in the Mahakam concession as part of a new production-sharing contract (PSC).
The ministry is in favor of the duo’s re-participation in Mahakam considering its familiarity with the block’s complicated geology and long experience in reviving production from the aging seven oil and gas fields in the concession.
United Arab Emirates-based Mubadala Petroleum and PetroChina have also evinced interest in acquiring a minority interest in Mahakam.
Both Total and INPEX have confirmed the talks with the Indonesian ministry. The two companies are seeking no less than 39% PI in the gas-rich Mahakam Block they jointly developed till the 50-year PSC expired Dec. 31, 2017.