East Natuna consortium completes market, technology review
Thursday, June 8 2017 - 02:52 AM WIB
Petromindo|Khalsa
The East Natuna consortium has completed the market and technology review for the planned development of the East Natuna block, in Riau Islands Province, Bisnis Indonesia reported on Thursday.
The paper quoted Syamsu Alam, Upstream Director of state-owned oil and gas firm PT Pertamina, leader of the consortium, as saying that the study will help the consortium determines what technology to be used in the development of the block, the oil and gas production volume, and the targeted market for the gas output. Other members of the consortium are ExxonMobil and PTT of Thailand.
He added that the results of the study are still being discussed by the consortium.
Syamsu previously said that market and technology review was necessary because the high carbon dioxide content in the East Natuna block has made the project to be more complex both in terms of technology and commercial. He said in January that once the study has been completed, the members of the consortium will move to the next stages including deciding their respective shares in the project, and other issues in the contract that will be signed with the government, before the consortium starts development process.
The government has been urging the consortium to quickly start the development of the East Natuna block. ?We have yet to discuss in that direction (development process). We?re still discussing the more fundamental issues,? Syamsu said on Wednesday.
He added that discussions also include the recent request by the government to apply the gross split scheme in the contract, while the consortium has initially made plans based on the cost recovery mechanism.
The East Natuna block, formerly called D-Alpha, is estimated to hold up to 200 tcf of gas reserves, the largest gas reserves ever found in Indonesia. However, only 46 tcf of the gas is said to be recoverable due the high CO2 element contained in the reserve. In the early phase, the consortium aims to accelerate oil production with a target of 7,000-15,000 bopd once the PSC has been signed. (*)