Government forms Natuna block development team

The government has formed a team assigned to accelerate development of Natuna D-Alpha gas block in Riau Islands, led by Director General for Oil and Gas Evita Legowo.

Energy Minister Darwin Saleh said the team would have six months to complete terms and conditions and name partner(s) for state oil and gas company PT Pertamina, which has been appointed as the gas-rich block?s operator.

The team was formed on Wednesday.

Pertamina has expressed disappointment with the delay in the issuance of approval by the government for the terms of condition (ToC) for the development of the block.

Pertamina's President Director Karen Agustiawan said the delay would not only affect the development plan of the field but also the company?s overall work programs.

She said that Pertamina needed certainty related to ToC because the development of the Natuna D Alpha field was part of the company?s plan to meet the oil and gas production target.

A number of major oil companies including ENI Spa, Chevron, Exxon Mobil, Petronas, and Total EP have expressed their willingness to join Pertamina as partners in the development of the gas field.

The government has handed over the block to Pertamina after the contract owned by American oil and gas giant ExxonMobil Corp. expired. The block is believed to hold 47 trillion cubic feet (TCF) of recoverable natural gas.

Karen said in November 2008 that Pertamina is ready to farm out up to 60 percent interest in the giant block to partner(s) and did not rule out the possibility of selecting more than one partners. Karen said Pertamina and the partner(s) might form a Joint Operating Committee to co-operate the block.

Pertamina then short-listed eight international companies as potential partners to develop the block. The companies are ExxonMobil, Corp., Total SA, Chevron Corp., StatOil, Royal Dutch/Shell, Eni SpA, Petronas and China National Petroleum Corp. (bernard)