Pertamina Signs HoA About Transfer Of Management Of Mahakam Block

Jakarta (Antara Bali) - State oil and gas company Pertamina signed Heads of Agreement (HoA) between Total E&P Indonesie and Index Corporation as part of the preparations for the transfer of the management of Mahakam Block.

"This is an initial step for Pertamina to prepare for the transfer of management. The HoA covers the transfer agreement to ensure the continuation of the block's operation during the transitional period after 2017 by considering the rights and obligations of all parties," Pertamina President Director Dwi Soetjipto said after attending the signing of the HoA here on Wednesday.

The HoA also includes a commercial agreement between Pertamina and Total-Inpes to settle the composition of partnership in the new  joint contract and procedure of cooperation among the new parties.

The new contract will give Pertamina room to continue to develop the block through exploration activities with the aim of optimizing production and discovering new deposits.

The new contract is expected to be signed before the end of this year. The joint contract for the Makaham block which will end on December 31, 2017 will not be extended. Pertamina has been appointed to manage Mahakam block after December 31, 2017.

Earlier, the government said if Total does not agree to a 10 percent stake in the block, it should abandon the block when the contract expires. (WDY)