Indonesia's Pertamina to Invest $1.5b in Mahakam in 2017: CEO

This file photo taken on Nov 14, 2015 shows oil rig and refinery in at Handil field in Mahakam block in East Kalimantan. (GA Photo/Mohammad Defrizal)

By : Wilda Asmarini | on 12:43 PM August 23, 2016
Category : Business, Corporate News

Jakarta. Indonesia's Pertamina plans to invest around $1.5 billion in the Mahakam gas block in 2017, the chief executive of the state-owned energy company said on Tuesday (23/08).

Pertamina will officially take over operation of the Mahakam block, Indonesia's biggest source of natural gas, in 2018 from French oil major Total and Japan's Inpex.

"Pertamina needs to start investing next year so that there isn't a significant decline in production in 2018," Pertamina CEO Dwi Soetjipto told reporters.

He said finalization of the handover agreement and details of what role Total will play in the Mahakam block will be ironed out in the next two weeks.

Reuters

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