REPUBLIKA.CO.ID, JAKARTA -- A lawmaker at  the House of Representatives said government should directly manage Mahakam block in East Kalimantan to provide more advantages to the country. The bock is currently developed by Total E&P Indonesia, a local unit of France-based oil and gas Total.

"A hundred percent of advantages will go to the state by fully owning Mahakam block," a member of Commission VII at Parliament, Kurtubi, said on Sunday, November 23. He expects state-owned oil and gas company Pertamina to continue developing Mahakam block. 

"Total has been in the block for 50 year. It is enough," he said. 

The initial contract of the block was signed on March 31, 1967, which covered a 3,339 square kilometer area. The company is hoping to continue managing the block for its mounting gas reserve.

Kurtubi said, with Pertamina managing the block, the state could manage the usage of gas for domestic needs. He exampled that the gas could be used for fuel, electricity, fertilizer and other industries. The option, also, can help decreasing import on oil.

However, he said, Pertamina should open an option for collaboration with Total. Pertamina would need the expertise from Total E&P in the beginning. "Do B to B discussion. Offer them swap option that gives more advantages to the country," he said.

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