INPEX CORPORATION (INPEX) announced its business plans concerning its participation in the Offshore Mahakam Block and INPEX Attaka Block located offshore East Kalimantan in the Republic of Indonesia, as outlined below.
The current production sharing contracts (PSC) for the Offshore Mahakam Block and INPEX Attaka Block, where INPEX is engaged in the development and production of oil and natural gas, expire at the end of 2017.
1. With the expiration of the current PSC for the Offshore Mahakam Block at the end of 2017, INPEX will surrender and return the block to the Indonesian government. Effective January 1, 2018, PT Pertamina (Persero) (Pertamina), Indonesia’s state-owned oil and natural gas Company, will hold all interests in the block and take over operatorship from TOTAL, the block’s current operator, in accordance with the new PSC. INPEX will continue pursuing discussions, in close partnership with TOTAL, with Pertamina and the Indonesian government authorities with the aim of participating in the block under the new PSC.
2. Meanwhile, INPEX will also surrender and return the INPEX Attaka Block to the Indonesian government with the expiration of the current PSC at the end of 2017. Going forward, the company will undertake the procedures associated with the surrender in cooperation with the Indonesian government authorities as well as Chevron, the operator of the Attaka Unit (1).
(1) The Attaka Unit is a unitized area consisting of sections of the INPEX Attaka Block and the adjacent East Kalimantan Block to the north.
The impact of this development on the consolidated financial results for the year ending March 31, 2018 is minimal.
