Government to offer East Natuna block to Inpex

The government plans to offer Japan?s Inpex Corp a participating interest in the East Natuna block, to replace ExxonMobil which has decided to pull out from the planned project, Bisnis Indonesia reported on Thursday.

This was said by Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan, whose office oversees the Ministry of Energy and Mineral Resources. ?Exxon and PTT EP (of Thailand) have pulled out from the consortium, so we?ll offer (the East Natuna block) to the others, to Inpex of Japan,? he said, but did not provide details about the plan.

ExxonMobil announced recently that it will move away from the project following completion of the technology and market review, which suggests that the East Natuna project is not economically feasible under current terms and conditions.

The government has assigned a consortium, led by state-owned oil and gas firm PT Pertamina to develop the East Natuna block in Riau Islands Province claimed to have one of the world?s largest reserves.

Inpex is currently planning to develop the gas-rich Masela block in Maluku Province.(*)