ExxonMobil signs Mou with PTT, Petronas on commercialization of huge gas block
Thursday, March 3 2005 - 02:00 AM WIB
Indonesian unit of US oil giant Exxon Mobil announced on Thursday that it had signed two separate MoUs with Thailand's PTT Public Company Limited and Malaysian state oil company Petronas regarding studies to develop Natuna D-Alpha huge gas block.
Under the MoU with PTT, both parties would conduct technical and commercial studies related to the sale of Natuna gas to Thailand, while under the Mou with Petronas, both parties will conduct technical and commercial studies of specific project parameters and commercial issues related to the block.
Activities under the MoU with PTT were a continuation of previous MoU.
?Both studies will be an important step towards development of the Natuna D-Alpha gas resource,? said EMOI.
The Natuna D-Alpha PSC Block is estimated to contain 46 trillion cubic feet of hydrocarbon gas, making it the largest undeveloped gas resource in Asia. The block is located around 1250 kilometers north of Jakarta in 145 meters of water. However, the block?s reserves contain a huge portion of CO2, making it very costly to commercialize the reserves.
Previous reports said that the block could be developed economically with gas flow rate of at least 1 BCFD.
Studies have been ongoing about the possibility to send the gas to Malaysia, Thailand and Java Island through pipeline.
Petronas had earlier said it had also interested to farm in the block.
ExxonMobil affiliates in Indonesia hold a 76% interest in the Natuna D-Alpha PSC, with PT Pertamina (Persero) holding the remaining 24% interest. (alex)