Govt asks ExxonMobil to submit proposal on Natuna block extension
Tuesday, January 23 2007 - 02:08 AM WIB
Kardya Warnika, the chairman of BPMIGAS, upstream oil and gas regulatory body, said in Jakarta on Monday that his office had officially asked ExxonMobil to propose for a new contract.
"The term of condition in the existing contract which was issued in 1990 should be changed because it is no longer relevant to the current situation," he said, adding that negotiations had been conducted but Exxon had yet to submit new contract proposal.
Kardaya said that the government would offer the chance to operate the Natuna D-Alpha block to other companies if Exxon did not submit a new contract proposal until the deadline. But he did not say specify the deadline.
On Jan 12, 2006, govt has given a deadline until June for ExxonMobil to fulfill all its obligations with third party in Natuna D-Alpha oil and gas block. The deadline for the fulfillment of obligations will be counted from December 2006.
?It was not a negotiation for extension of the contract,? Ministry of Energy and Mineral Resources' director of upstream business development R. Priyono said, citing that both the government and upstream oil and gas regulator BPMIGAS have said the contract has expired. Currently, the termination of the contract was still under process, he said on Jan 11, 2006. (godang)