Consultant completes development study on East Natuna

By Peni Pedriawan

An independent consultant has completed its development study on the massive East Natuna block in September, which bodes well to the Energy and Mineral Resources Ministry?s target of completing and signing the block?s PSC terms and conditions by the end of the year.

Ministry?s Director General of Oil and Gas Evita Legowo said the independent consultant has finished and submitted the study to the Ministry at the end of September. The study will also be reviewed by the Finance Ministry. ?In near future, the two ministers will sit together and discuss that,? said Evita.

The government and operator PT Pertamina East Natuna as well as partners have said they expected the terms and conditions of the PSC could be signed before the year-end.

The East Natuna block is one of the largest untapped gas reserves in Asia with gas reserves estimated at 46 tcf. The gas reserve, however, has a significant CO2 content which requires more investment to develop.

Pertamina and partners including ExxonMobil and Total SA have therefore requested for incentives from the government to develop the block.

Editing by Dadan Wijaksana