East Natuna PSC may not be signed this year

Pertamina

The East Natuan block production sharing contract (PSC) may not be able to be signed this year as members of the consortium have yet to agree on the entire economic and legal aspects of the contract, Kotan reported on Tuesday.

The paper quoted Denie S. Tampubolon, Senior Vice President for Upstream Business Development at state-owned oil and gas firm PT Pertamina, which leads the consortium assigned to develop the East Natuna block in Riau Islands Province, as saying that the consortium is currently still in intensive talks with the government over the economic and legal aspects of the contract.

He said that while some points of the two aspects have been agreed upon, there are certain parts which have yet to be agreed. He did not provide further details.

The East Natuna consortium includes Pertamina, ExxonMobil, and PTT Thailand.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, IGN Wiaratmaja Puja said that it is unlikely the East Natuna PSC can be signed in the near future as there are still many things rc drone that have yet to be agreed upon by the government and the members of the consortium.

Pertamina Upstream Director Syamsu Alam said earlier this month the company was ready to sign the East Natuna PSC in December.

The East Natuna block, formerly called D-Alpha, is estimated to hold up to 200 tcf of gas reserve, the largest gas reserve 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. (*)