Govt ignores Exxon?s Natuna POD, saying contract has ended
Monday, January 12 2009 - 03:55 AM WIB
?The contract (with ExxonMobil on Natuna D-Alpha block) has expired. The PoD does not matter any longer,? Purnomo said on the sidelines of the seminar on a new mining law organized by Petromindo.com.
Purnomo said the government would hold a press conference tomorrow (Tuesday) to explain about the Natuna D-Alpha block.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Evita Legowo said on Thursday, Jan. 8, 2009, that ExxonMobil Oil Indonesia (EMOI) had submitted the PoD for the block on Dec 30, 2008, claiming its contract was still in force.
?It is up to the Minister (of Energy and Mineral Resources) to decide ether to accept or reject the PoD,? Evita said.
The dispute over the D Alpha block surfaced several years ago when the government, which was angry over the fact that American firm had yet to start developing the block, announced that its contract on the block had automatically expired in 2005. The firm however insisted it still has rights over the block because it has extended the contract through January 2009. Under the contract, ExxonMobil has 76 percent stake in the block with Pertamina as partner having the remaining 24 percent.
In a Cabinet meeting in February 2008, the government decided to terminate ExxonMobil's contract. It was followed by a letter sent by Minister of Energy and Mineral Resources Purnomo Yusgiantoro in June this year, assigning Pertamina to develop the block.
Pertamina then short-listed eight international oil, gas firms to become partners to develop the block. The talks with the potential partners were hampered by the fact that Pertamina had no technical data on the block.
Natuna D-Alpha block is believed to have recoverable gas reserves of 46TCF..(godang)