Government to take over the operation of Natuna D-Alpha field

The government will take over the operation of the Natuna D-Alpha gas field if the current operator Esso Natuna Ltd does not immediately apply for the extension of the contract, which would expire in 2005, Bisnis Indonesia reported on Wednesday.

The director general of oil and gas of the ministry of energy and mineral resources, Iin Arifin Takhyan, said in Jakarta on Tuesday that Esso Natuna had carried out exploration activities since 1995 but had so far failed to find gas deposits.

"Basically, the government has no problem with the extension of the contract, if the company is committed for further development of the gas field," he said, adding that although the field had yet to produce, Esso Natuan is still active.

The Natuna D-Alpha gas field is jointly owned by Pertamina with 24 percent interest and Esson Natuna, a subsidiary of ExxonMobil, with 76 percent. The 10-year contract for the development of the field was signed in 1995. (*)