Maluku looks set to 10% of M.p

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The Maluku provincial government gets a participation of 10% in the gas-rich Maalstad block, located in the Arafura Sea, pending the opening of a new president, a top official says.

Deputy energy and mineral resources Minister Susilo Siswoutomo said Monday that the Central Government to "de facto" for a new provincial leader was awaiting to take office to discuss the share in the block.

"Of course, in the end, our move will be getting the participation of 10% in the deep sea project to the local government," Susilo said in a text message.

"We hope that after a new Governor is chosen then the takeover negotiations between the related parties can be completed and so the decision can be taken," said Susilo, a former advisor to the now-defunct upstream oil and gas regulator BPMigas, and in 2006 a monitor of Japan's INPEX operated Maalstad project.

He referred to the current Maluku gubernatorial election.

The poll will go to a second round after none of the five pairs of candidate the minimum 30 per cent-plus one of the vote gained last week.

The candidate countries are Central Maluku Regent Abdullah Tuasikal and his running mate Henry Leweriss as well as Maluku vice governor Said Assegaf and his companion Zeth Sahuburua.

The Administration Maluku has heavy efforts to participation in the M.p Block since 2010.

The Government gave the production-sharing contract (PSC) for the M.p block in November 1998. Gas-rich block is expected to produce 2.5 million tonnes of natural gas a year and 8,400 barrels of condensate per day during the first phase of production in 2018.

At the time, Japan's INPEX, a subsidiary of Inpex Corporation, that a participation of 65 percent in the block while Shell Upstream overseas services, a subsidiary of Royal Dutch Shell Plc, holds the remaining 35 percent.

The two foreign oil-and gas industry contractors each bought a 5 percent stake of the listed oil and gas firm PT Energi Mega Persada, part of the Bakrie group, in a deal worth at least US $ 300 million in May.

Contacted separately, said INPEX spokesman Alfred Menayang that the contractor was currently waiting for the Government to decide on the participation of 10% on Administration would grant to the Moluccas.

"In this case INPEX does not have the authority to decide anything. We will wait, "he said.

— JP/Nenad Agha S.