Inpex Signs Mahakam Block Transfer Agreements

Japanese Inpex has signed a series of agreements concerning the transfer of operations for the offshore Mahakam block with Pertamina and French Total. This, Inpex said March 14, marks one of the steps to begin discussions concerning participation in the Mahakam block from January 2018.

Currently, the Japanese comapny is engaged in the development and production of oil and natural gas in the Mahakam block in partnership with Total, which is the operator, Each owns half, and they are in discussion with Pertamina and the Indonesia government with the aim of participating in the Mahakam block after the current production sharing contract expires at the end of 2017. Inpex entered into its current PSC with the Indonesian government in October 1966. 

The venture subsequently made a series of oil and natural gas discoveries. 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 LNG plant, and then shipped as LNG to customers in Japan and elsewhere.  

Shardul Sharma