Publications

In 2007, the request for the Mahakam PSC extension was submitted by TOTAL E&P INDONESIE (TEPI) and INPEX to the Government of Indonesia. After years of negotiation with the Government as well as PERTAMINA, the decision on how Mahakam block will be operated post-2017 only was granted in July 2015. The Government has appointed PERTAMINA as the Operator of the new Mahakam PSC starting 1st January 2018. Considering the maturity of the Mahakam fields and the operation complexity, transition to the new operator will be the key for Mahakam performance in future. Continuous operation and investment have to be ensured until the transfer takes place in order to maintain the production level and secure all existing gas sales commitments which extend beyond the current PSC expiry. Being a responsible Operator, TEPI and its partner, INPEX, fully support all efforts and cooperation with PERTAMINA during the transition period pre-2018. Creation of a transition team on both side, TEPI and PERTAMINA, was done in end 2015. Under the Transfer of Operatorship Agreement, signed in July 2016, the two teams have worked intensively with main tasks to: i) identify issues related to the termination of the Mahakam PSC and transfer of operatorship, ii) ii) define the required program to close the issues, iii) iii) ensure good implementation of the program through monitoring of the progress, and iv) coordinate internal and external stakeholders. This paper will outline the objectives of operatorship transfer with key deliverables during the transition period (2016-2017). To structure the process, a two scopes approach has been defined, strategy and challenges of which will be shared. Complex internal/external interfaces will be described as well as integrated project planning of the operatorship transfer involving a large PSC with key production contribution to Indonesia, this paper will be very useful to be presented so that the Government as well as Indonesian O&G stakeholders can benefit through the shared of knowledge from the journey that TEPI and INPEX has embarked. Keywords: Mahakam, operatorship transfer, transition, expiring PSC.