Total in talks with Pertamina on overseas asset swap for Mahakam interest

[JAKARTA] Total is in talks with Indonesia's Pertamina on a possible asset swap in return for a continuing participating interest in the country's top gas producing field, an official at the French oil major said on Tuesday.

"We are open to swapping one of our overseas assets with Pertamina," Total Indonesie President and General Manager Hardy Pramono told reporters, referring to Total's operations in Indonesia, Canada and Africa. "We are discussing this with Pertamina."

With Pertamina due to take over operatorship of the Mahakam block from Total in 2018, the asset swap was suggested by the Indonesian government to leverage a partnership between the two resource firms while expanding the country's resource base.

Total plans to cut its budgeted investment in Indonesia this year by 10-15 per cent from a target of US$2.4 billion, a company spokesman said, citing a decline in global oil and gas prices.

REUTERS