May 11, 2018 / 2:18 PM / 4 months ago

Indonesia's Pertamina considers putting Iran deal on hold

JAKARTA, May 11 (Reuters) - Indonesian state energy company Pertamina is considering placing its contract with Iran to operate the Mansouri oilfield on hold because of the threat of U.S. sanctions, director Syamsu Alam told reporters on Friday.

The United States plans to reintroduce sanctions against Iran after abandoning a deal reached in late 2015 that limited Tehran’s nuclear ambitions in exchange for the removal of U.S. and European sanctions.

Pertamina said in March that it had won the tender to operate Iran’s Mansouri field with 80 percent participating interest.

On Friday Alam said that Pertamina would not be able to continue with the contract if there were sanctions from the United States or any other country, adding that sanctions could also create financing problems because the company might seek loans from U.S. banks.

“Our position is to put it on hold because of the sanctions threat,” Alam said, adding that a final decision will be made on Saturday.

He also said the company is reviewing its plan to import oil and gas from Iran.

Separately on Friday, the Indonesian government awarded the operation of two oil and gas blocks at the Jambi Merang and Raja-Pendopo fields to Pertamina. (Reporting by Jakarta bureau Writing by Fransiska Nangoy Editing by David Goodman)

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