Govt says Natuna PSC to be completed in May

Government has set target to complete East Natuna giant gas block?s production sharing contract arrangement in May this year and prioritized future gas production to meet domestic market.

The decision was made during energy coordination meeting in Jakarta on Wednesday lead by Vice President Boediono, media reported.

The participants in the block, which was formerly named Natuna D Alpha would be state oil, gas company PT Pertamina, which most likely will become operator, former Natuna D Alpha operator Exxon Mobil Corp. French giant Total SA and Malaysian firm Petronas.

The reports said that gas production from East Natuna would be prioritized to meet domestic demand, but could be exported if there is spare capacity.

The government has handed over the block to Pertamina after the contract owned by Exxon Mobil Corp. expired. The block is believed to hold 47 trillion cubic feet of recoverable natural gas but with high level of CO2 . (godang)