ExxonMobil continues negotiations on Natuna gas block

American oil and gas giant ExxonMobil Corp. will continue its negotiations with the government on the extension of the contract on the development of the Natuna D-Alpha block, Kompas reported in Jakarta on Saturday.

ExxonMobil Oil Indonesia's vice president for external relations Maman Budiman said in Jakarta on Friday that it would take time for the company to come up with concrete proposal. He also emphasized that Exxon would not bring the case to the international arbitrary even though the government had terminated the contract before its expiry.

"If there is a statement that Natuna D-Alpha block declared an open acreage which allows anyone to enter, this has not yet been officially conveyed to ExxonMobil," Maman said.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said earlier that as ExxonMobil's contract over the Natuna gas block had been terminated, other companies could also enter into negotiations to operate the Natuna block.

"There is no problem for ExxonMobil to continue the negotiation but it is not legally binding until it produces a concrete result. Other companies can also enter into negotiations with the government," he added. (*)