Indonesia Likely to Decide on Mahakam PSC Extension Next Year

Indonesia is not likely to make a decision on the future of the Mahakam production sharing contract (PSC) located offshore East Kalimantan until next year, an official of the country's national oil and gas company PT Pertamina said at an industry conference in Singapore Thursday.

"There is now news yet on (the extension of) Mahakam block ... (a decision is expected) probably next year after the new government settles in," Didik Sasongko Widi, Pertamina's vice president of LNG, Gas Directorate told Rigzone on the sidelines of the 6th World LNG Series: Asia Pacific Summit, organized by the CWC Group Limited.

Pertamina has indicated on several occasions that it is ready to manage the Mahakam block as the PSC, currently held by Total S.A. and Inpex Corp., is due to expire in 2017. Partners in the Mahakam block have been negotiating with the Indonesian government to secure an extension to the PSC beyond 2018.

Separately, the company official said there is no change to Pertamina's role in Indonesia's energy industry despite recent media reports that some changes are expected when president-elect Joko Widodo takes office next office. The firm is however keen to become a more successful oil company like Malaysia's Petroliam Nasional Berhad (Petronas).

"We want to be like Petronas (the most successful national oil and gas company in Southeast Asia)," Didik said.