Pertamina Sees Delay on Mahakam Decision to Q1 2016

Total Indonesie's plant at the Mahakam oil and gas block in East Kalimantan. (GA Photo/Mohammad Defrizal)

By : Reuters | on 1:39 PM December 07, 2015
Category : Business, Commodities, Featured

Jakarta. Indonesia's state energy giant Pertamina expects the signing of the production sharing contract for the Mahakam oil and gas block to be postponed to the first quarter of 2016 from the end of this year, a director said on Monday.

The signing of the contract is likely to be delayed as Pertamina will not be able to finish its discussion with the Indonesian government this year, Pertamina upstream director Syamsu Alam told reporters.

The current operators, French oil firm Total and Japan's Inpex, would likely be excluded from the new contract but would have the option to share an up to 30 percent stake at a later date if they fulfill certain conditions, Alam said.