ExxonMobil Proposes ?standstill? for Natuna

U.S. oil and gas giant ExxonMobil Corp has proposed "a standstill" in the development of the development of Natuna D-Alpha block in South China Sea while the company and the government seek to negotiate a resolution to a contractual dispute over the block.

?It is part of the negotiation (of the new contract). (We propose first) a standstill, then a change in terms and condition,? Maman Budiman, ExxonMobil Indonesia?s vice president for public affairs, said on Thursday.

Oil and gas upstream regulator BP Migas Kardaya Warnika has confirmed that the American oil company had made such a proposal.

But, he said, the government hasn't yet responded to the proposal.

In October last year, the Indonesian government announced that Exxon's legal right to develop Natuna had expired or been terminated.

Exxon has insisted that it retains the contractual right to continue development until 2009 of the block, which the firm estimates holds 46 trillion cubic feet of recoverable natural gas reserves.

Exxon later agreed to renegotiate the contract with the government. (Godang)