REPUBLIKA.CO.ID, JAKARTA - Indonesian government through Ministry of Energy and Mineral Resources restarts discussion on extension contract of Mahakam block with French Foreign Minister and business delegation. Minister of Energy and Mineral Resources, Jero Wacik said government would prioritize Indonesia corporates instead of foreign companies.

"But we also consider interest of French through Total E&P," Wacik said.

Mahakam block is currently managed by French oil company, Total E&P with 50 percent ownership rights. Meanwhile, the rest is controlled by Inpex Coorporation of Japan. Mahakam cooperation contract with Total will end in 2017 after contract of 50 years.

The first contract was signed on March 30, 1967. Wacik said that Indonesia considered Total E&P since the French oil and gas company had high technology and huge investment. But he asked France to invite PT Pertamina to play role in management of Mahakam block.

French delegation's visit is meant to continue discussion of French investment in Indonesia, especially in energy and mineral resources. French mining company, Eramet also wants to expand in Indonesia.

Eramet through its subsidiary, Weda Bay Nickel plans to build a nickel refinery and processing plant or smelter in Halmahera with total investment of 5.5 billion USD. Its production capacity up to 65 thousand tons of nickel and 3,500 tons of co- sulfide per year.

Weda Bay Nickel will invest 3.5 billion IDR for construction. The company plans to build training center in Makassar (South Sulawesi) and Kupang (East Nusa Tenggara). 

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