Jakarta. Total E&P Indonesie, a unit of French major Total, and Japan's Inpex Corp have proposed taking a 39 percent stake in the new production sharing contract (PSC) for the Mahakam block, an Indonesian government official said on Friday (12/05).
Indonesia's government in 2015 offered the two companies — operators of the offshore Mahakam oil and gas block — a smaller stake of 30 percent in the new PSC, with Indonesia's Pertamina taking the rest. The companies' current contract expires at the end of this year.
Indonesia's deputy energy minister Arcandra Tahar said Total and Inpex have requested the addition of several clauses to the new contract, including being able to sell gas at market prices to domestic buyers and the acceleration of asset depreciation.
Total's Indonesia spokesman declined to comment. Inpex is not immediately available to comment.