ExxonMobil to surrender E. Natuna data to government

By Bonha Ventura Sebayang

ExxonMobil has agreed to hand over the entire data on the East Natuna block in Riau Islands Province to the government after the company decided to pull out from the consortium assigned to develop the block.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said on Friday that the company will transfer all data on the block including those from the 1970s, which will help the East Natuna consortium in developing the block. ?I?ve met with them (ExxonMobil officials) last evening, they said the company will hand over the data,? he said on Friday.

Arcandra also said the government hopes state-owned oil and gas firm PT Pertamina to be able to quickly get new partner for the development of the East Natuna block. He said that Pertamina needs partners in developing the project considering its large scale, big investment requirement, and huge risk. The company will be given full freedom in selecting the partner for the East Natuna project, he added.

ExxonMobil announced Tuesday that it has decided to move away from the East Natuna project as it is considered to be not economically feasible under the current terms and conditions. The company made the decision following completion of the market and technology review of the project.

The East Natuna block, formerly known as Natuna D-Alpha, claimed to hold the world?s largest gas reserves, was first discovered in 1973 by Agip. Pertamina and Exxon formed a joint venture in 1980 to develop the block, but due to the high CO2 content, the partnership was unable to start production. The government in 1995 signed a contract with Exxon, which was terminated in 2007 due to lack of progress in the project. In 2008, the government transferred the block to Pertamina, which in 2011 signed principal agreement with a number of companies to form the East Natuna consortium including ExxonMobil, Total SA and Petronas. The two latter companies then pulled out from the consortium, and replaced by PTT EP of Thailand. A production sharing contract for the block, however, has yet to be signed due to a number of unsettled issues including ownership distribution of the consortium.

Meanwhile, ExxonMobil Vice President for Public and Government Affairs, Erwin Maryoto was quoted by Kontan as saying that the company is ready to provide its CO2 separation technology for Pertamina in the development of the East Natuna block, whose gas reserves is believed to contain 75 percent of CO2 that must be separated. ?If Pertamina requires (the Exxon technology), we?re ready to cooperate,? he said.

Editing by Reiner Simanjuntak