Indonesia's Pertamina to Take over as Madura Block Operator

Indonesia's PT Pertamina said it will take over from South Korea's Kodeco Energy as the operator of the West Madura Block in the Java Sea off Madura island in 2011.

The state oil and gas company has a 50 per cent stake in the block with Kodeco and China's National Offshore Oil Corp. (CNOOC) holding 25 per cent stake each.

However, currently Kodeco is still the operator of the block, which produces around 21,000 barrels of oil per day.

Pertamina wants to become the operator after it secures an extension of its contract, which will expire in 2011.

Under the new contract, Kodeco and CNOOC have agreed to transfer to Pertamina a 5 per cent stake each, Pertamina spokesman Mochamad Harun said.

Harun said Pertamina's subsidiary, PT Pertamina EP, which operates in the upstream oil and gas sector, will be the operator.

Pertamina is also currently in talks with Total E&P Indonesie on plan of the state company to buy a stake in the Mahakam block in East Kalimantan, operated by the subsidiary of France's Total S.A.

Pertamina is set to have a substantial share in the gas rich block after the contract of Total E&P Indonesie expires in 2017, the newspaper The Jakarta Post said.

Full details available at This Link.