Discussion on JOA for East Natuna continues after Petronas? exit

By Godang Sitompul

State oil and gas company PT Pertamina said it will go ahead with discussions with its partners to finalize the terms and conditions of Joint Operating Agreement and Production Sharing Contract on the development of East Natuna Block, previously known as Natua D Alpha following reports that Petronas decided to pull out from the project.

?Discussion on the matter will still continue,? Director of Upstream of PT Pertamina Muhammad Husein told Petromindo.com. ?Pertamina wasn?t affected and (discussions) are still going on,? he said.

Separately, Comissioner of Pertamina, who is also Director General for Oil and Gas, Evita H. Legowo, said she expects the JoA and PSC for East Natuna can be finalized this year.

Both Husein and Evita declined to elaborate on the details or terms of the JOA and the PSC.

With the withdrawal of the Malaysian company, Pertamina as the operator would cooperate with remaining partners Esso Natuna Ltd and Total E&P Activities Petrolieres in developing the East Natuna gas field.

In August 19, 2011, Pertamina and its partners Petronas, Esso Natuna Ltd and Total E&P Activities Petrolieres signed Principles of Agreement (PoA) on the development of the East Natuna. The POA is an initial agreement which was to be used as the basis for the issuance of a production sharing contract (PSC) by the government

Editing by Roffie Kurniawan