Total E&P Indonesie, a unit of French major Total, and Japan's Inpex Corp have proposed taking a 39 percent stake in the new production sharing contract (PSC) for the Mahakam block, an Indonesian government official said on Friday.

Indonesia's government in 2015 offered the two companies - operators of the offshore Mahakamoil and gas block - a smaller stake of 30 percent in the new PSC, with Indonesia's national oilcompany Pertamina taking the rest. The two companies' current contract expires at the end of this year.

Indonesia's deputy energy minister Arcandra Tahar said the government has yet to respond to Total and Inpex. The government is asking Pertamina to calculate the value of the Mahakam block to determine the price of the stake, he said.

"The government will decide (whether they get) 30 or 39 percent," Tahar told reporters. "We're evaluating, but the point is it will depend on the valuation."

Total's Indonesia spokesman declined to comment. Inpex spokesman did not answer phone calls or respond to texted requests for comment.

Total and Inpex have also requested the addition of several clauses to the new contract, Tahar said, including being able to sell gas at market prices to domestic buyers, getting a 17 percent investment credit for developing the block, and the acceleration of asset depreciation.

Under the new PSC, Pertamina will be the main operator of Mahakam starting January 1, 2018. Pertamina will also have to sell 10 percent of the block to the government of East Kalimantan province, Tahar said.

Total expected Mahakam's gas output to drop to 1.43 billion cubic feet per day (bcfd) in 2017 andoil production to 53,000 barrels per day (bpd), both down from the block's 2016 production levels, it said in December.

By Reuters Reporting by Wilda Asmarini l Writing by Gayatri Suroyo l Editing by Tom Hogue