Balikpapan, E Kalimantan (ANTARA Kaltim) - State-owned oil and gas company Pertamina will ask workers of Total Indonesie to stay working at the Mahakam Block after the French company ended its contract as the operator of the gas block in East Kalimantan since 1967.
Pertamina will take over as the new operator of the gas block on January 1 in 2018 and it hopes no job left vacant after the take over.
Pertamina will offer the workers of Total Indonesiea to stay and promise they will keep the position with the same pay under the state company, head of Oil and Gas Special Working Unit (SKK Migas) for Kalimantan and Sulawesi Nasvar Nizar said here on Wednesday.
SKK Migas has facilitated a meeting to discuss the offer, Nizar said, adding he had also met with the labor union unit of the gas block.
In principle Pertamina needs the workers and the workers also need the company, Nizar said.
He said the offer by Pertamina is not an obligation, adding the workers are free to decide.
If an employee holding an important position decides to leave, Total is asked to find a replacement.
"Perhaps by promoting a deputy or other competent staff. The one knowing about it is Total," Nizar said.
Separately, chief spokesman of Total Indonesia Kristanto Hartadi said that Total employs 3,700 workers permanently and non permanently at the block. They are placed at the Balikpapan office, the oil and gas fields of Senipah, Peciko, Handil, up to South Mahakam off shore of Balikpapan.
Total and Pertamina have pledges smooth transition in the operation of the gas-rich block, given its vital role in maintaining the country`s energy security.
The government has given approval for the revision of Mahakam's production sharing contract (PSC) that will enable Pertamina to conduct early investment in the block next year.
The early investment is needed as a legal base before Pertamina officially takes over Mahakam`s operations, Energy and Mineral Resources Minister Ignasius Jonan said earlier.
Mahakam block is owned by Total and Japanese partner Inpex each with a share split of 50 percent , but Pertamina will take over controls as the sole owner as from January, 2018.
Jonan said the early investment was intended to prevent any sudden drops in oil production during the operator-transition period, as Mahakam remains the backbone of national gas production.
Total has expressed keen interest in renewing its contract but the government decided to hand the block over to the state company.
Mahakam is currently the biggest gas-producing block in the country. The block produced 1.7 billion cubic feet per day (bcfd) of natural gas in the first quarter of the year, significantly higher than its 1.5 bcfd target of 2016.
Its oil production is in line with the target of 65,000 barrels of oil per day (bopd),a report quoting officialo data said.
The Mahakam PSC will be operated under Pertamina's newly established subsidiary, Pertamina Hulu Mahakam, starting on Jan. 1, 2018. Pertamina will operate Mahakam for 20 years until 2038.
Pertamina plans to invest US$180 million for drilling activities in 19 wells in the block before Jan. 1, 2018 with the help of Total as the current operator.
With Pertamina's early investment, Mahakam`s gas production should be maintained at about 1.2 billion standard cubic feet per day (bscfd), with condensate at 20,000 barrels condensate per day (bcpd) in the period of 2018 to 2019.
Total will also conduct drilling activities in the block`s six wells before Pertamina`s take over on Jan. 1, 2018 as part of the efforts to ease declining production.
Pertamina president director Dwi Soetjipto said the company would use its internal cash to invest in the block.
It will also work together with Total in the transition process in order to curb the declining production rate, the report said. (*)
COPYRIGHT © ANTARA News Kalimantan Timur 2016
Pertamina will take over as the new operator of the gas block on January 1 in 2018 and it hopes no job left vacant after the take over.
Pertamina will offer the workers of Total Indonesiea to stay and promise they will keep the position with the same pay under the state company, head of Oil and Gas Special Working Unit (SKK Migas) for Kalimantan and Sulawesi Nasvar Nizar said here on Wednesday.
SKK Migas has facilitated a meeting to discuss the offer, Nizar said, adding he had also met with the labor union unit of the gas block.
In principle Pertamina needs the workers and the workers also need the company, Nizar said.
He said the offer by Pertamina is not an obligation, adding the workers are free to decide.
If an employee holding an important position decides to leave, Total is asked to find a replacement.
"Perhaps by promoting a deputy or other competent staff. The one knowing about it is Total," Nizar said.
Separately, chief spokesman of Total Indonesia Kristanto Hartadi said that Total employs 3,700 workers permanently and non permanently at the block. They are placed at the Balikpapan office, the oil and gas fields of Senipah, Peciko, Handil, up to South Mahakam off shore of Balikpapan.
Total and Pertamina have pledges smooth transition in the operation of the gas-rich block, given its vital role in maintaining the country`s energy security.
The government has given approval for the revision of Mahakam's production sharing contract (PSC) that will enable Pertamina to conduct early investment in the block next year.
The early investment is needed as a legal base before Pertamina officially takes over Mahakam`s operations, Energy and Mineral Resources Minister Ignasius Jonan said earlier.
Mahakam block is owned by Total and Japanese partner Inpex each with a share split of 50 percent , but Pertamina will take over controls as the sole owner as from January, 2018.
Jonan said the early investment was intended to prevent any sudden drops in oil production during the operator-transition period, as Mahakam remains the backbone of national gas production.
Total has expressed keen interest in renewing its contract but the government decided to hand the block over to the state company.
Mahakam is currently the biggest gas-producing block in the country. The block produced 1.7 billion cubic feet per day (bcfd) of natural gas in the first quarter of the year, significantly higher than its 1.5 bcfd target of 2016.
Its oil production is in line with the target of 65,000 barrels of oil per day (bopd),a report quoting officialo data said.
The Mahakam PSC will be operated under Pertamina's newly established subsidiary, Pertamina Hulu Mahakam, starting on Jan. 1, 2018. Pertamina will operate Mahakam for 20 years until 2038.
Pertamina plans to invest US$180 million for drilling activities in 19 wells in the block before Jan. 1, 2018 with the help of Total as the current operator.
With Pertamina's early investment, Mahakam`s gas production should be maintained at about 1.2 billion standard cubic feet per day (bscfd), with condensate at 20,000 barrels condensate per day (bcpd) in the period of 2018 to 2019.
Total will also conduct drilling activities in the block`s six wells before Pertamina`s take over on Jan. 1, 2018 as part of the efforts to ease declining production.
Pertamina president director Dwi Soetjipto said the company would use its internal cash to invest in the block.
It will also work together with Total in the transition process in order to curb the declining production rate, the report said. (*)
Editor : Didik Kusbiantoro
COPYRIGHT © ANTARA News Kalimantan Timur 2016