Pertamina Can Opt for Up to 15% Stake in Expiring PSCs in Indonesia

In March, the Indonesia government rejected the Mahakam PSC joint venture's requests for contract extension beyond end 2017 and the decision enables Pertamina to take over as field operator Jan. 1, 2018.

While the firm operates a number of oil and gas blocks in the country, Pertamina's contribution to domestic petroleum production is estimated at around 23 percent, below its counterparts in other countries.

“One of our focuses is to develop the upstream sector because we are currently only contributing around 23 percent to national production. National oil companies in other countries have bigger contributions,” Pertamina President Director Dwi Soetjipto said, as quoted in The Jakarta Post, adding that the firm hopes to grow its share to 50 percent.

During the first quarter of 2015, the company's oil production reached 267,480 barrels of oil per day (bopd), while gas production amounted to 1.622 million standard cubic feet per day (MMscf/d). Indonesia plans to produce 825,000 bopd in 2015.

Turning to senior appointments in Indonesia's MEMR, Wiratmaja Puja has now been appointed director general of Oil & Gas, being selected ahead of two other candidates -- former acting president director of Pertamina Muhammad Husen and president director of state-run Pertagas Niaga Jugi Prajogjo.