Japan’s Inpex has signed a series of agreements concerning the transfer of operations for the offshore Mahakam block with Pertamina and Total.
This is one of the steps to begin discussions concerning participation in the Mahakam block from January 2018.
Inpex is currently engaged in the development and production of oil and natural gas in the Mahakam block in partnership with Total, the operator.
Both companies are pursuing discussions with Pertamina and the Indonesian government authorities with the aim of participating in the Mahakam block after the current production sharing contract (PSC) expires at the end of 2017.
The agreement will see the transfer of operatorship from Total to Pertamina and includes measures to facilitate latter’s steady operations as operator in the Mahakam block from January 2018.
Inpex entered into its current PSC for Mahakam with the Indonesian government in October 1966, wherein Inpex currently retains a 50% participating interest, with the remaining 50% held by Total.
The venture subsequently made a series of discoveries in the Bekapai, Handil, Tambora, Tunu, Peciko, Sisi, Nubi, and South Mahakam fields, each of which has continued to produce crude oil and natural gas for more than 40 years.
The crude oil and condensate produced from these fields are shipped mainly to oil refineries and power companies in Japan by tanker from the Santan and Senipah terminals.
Most of the natural gas is supplied to the Bontang liquefied natural gas (LNG) plant and then shipped as LNG to customers in Japan and elsewhere.
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