Pertamina Signs Amended PSC for Mahakam Gas Block

Indonesia's Pertamina on Tuesday signed a production-sharing contract amendment for the Mahakam block, an energy ministry official said, before it takes over operating the country's top producing gas field in January 2018 from French oil major Total.

 

The amendment allows Pertamina to recover any costs on the Mahakam operations in 2017, when the state-owned energy company plans to spend an estimated $180 million to drill 19 wells, in efforts to keep the block's output from falling sharply in 2018.

 

Hardy Pramono, chief executive of Total E&P Indonesie, said the Mahakam block is expected to produce 1.4 billion to 1.5 billion standard cubic feet per day of gas in 2017, and around 50,000 barrels per day of oil.


(Reporting by Wilda Asmarini; Writing by Fergus Jensen; Editing by Clarence Fernandez)