Japan’s Inpex has decided to surrender two blocks offshore Indonesia. The current production sharing contracts (PSCs) for these two blocks expire at the end of 2017.
Inpex on Monday announced its business plans concerning its participation in the Mahakam Block and Attaka Block located offshore Indonesia where the company is engaged in the development and production of oil and natural gas.
With the expiration of the current PSC for the Mahakam Block at the end of the year, Inpex said it will surrender and return the block to the Indonesian government. The company has a 50% interest in the block.
Effective January 1, 2018, PT Pertamina (Persero) (Pertamina), Indonesia’s state-owned oil and natural gas company, will hold all interests in the block and take over operatorship from Total, the block’s current operator, in accordance with the new PSC.
Inpex added it will continue pursuing discussions, in close partnership with Total, Pertamina, and the Indonesian government authorities with the aim of participating in the block under the new PSC.
Meanwhile, Inpex will also surrender and return the Attaka Block, where the company holds a 50% interest, to the Indonesian government.
Going forward, Inpex stated it will undertake the procedures associated with the surrender in cooperation with the Indonesian government authorities as well as Chevron, the operator of the Attaka Unit. The Attaka Unit is a unitized area consisting of sections of the Inpex Attaka Block and the adjacent East Kalimantan Block to the north.