REPUBLIKA.CO.ID, BALIKPAPAN -- Pertamina Hulu Mahakam (PHM), a subsidiary of state oil and gas company PT Pertamina is given a production target of 42,010 barrels of oil in lifting and 916 million standard cubic feet of natural gas per day from the Mahakam block, formerly operated by France's Total E&P .

Pertamina has taken over full control of the big gas block in East Kalimantan from Total E&P Indonesie and Japan's Inpex Corporation, after the contract of the two foreign firms expired on Dec 31 last year. Total and Inpex started the operation of the block in 1966.

PHM, which has been named the operator of the gas block in the Mahakam working area plans to invest US$1.7 billion in the working area, Pertamina's Upstream Director Syamsu Alam said.

The fund would be used for explorations, development and oil and gas production, Syamsu said, adding 69 development wells would drilled.

So far, PHM has drilled 14 wells and drilling of another well would be finished to guarantee sustainability of production, he said.

Before the takeover, under the previous operator Total Indonesie, the Mahakam block contributed 13 percent to the country's gas production.

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