Government sets up coordination team for Natuna

The government plans to set up a special team to coordinate efforts to develop the giant Natuna D Alpha gas block development in South China Sea, Kompas reported Thursday.

Minister of Energy and Mineral Resources, Purnomo Yusgiantoro said that the task of the team has yet to be decided, but it would be similar to the coordination team set up for the acceleration of the development of the 10,000 MW power project.

Former President BJ Habibie also formed a coordinating team to oversee the development of the gianf field, citing the huge investment needed, the potential huge economic benefits that it may give to Indonesia in general and the surrounding areas in particular and the proximity of the gas fields to the border areas of Malaysia, Thailand and China.

Purnomo said that the government sees the Natuna D Alpha block as a strategic project. "Besides, Natuna has issues related to national security."

Sources told the newspaper that the coordinating team will be established through a presidential decree with former vice president of state oil and gas company PT Pertamina, Iin Arifin Takhyan, as the chairman.

When contacted, Iin refused to confirm. "Just wait for the presidential decree," he said.

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 of recoverable natural gas. (*)