Govt sends letter to ExxonMobil on Natuna
Wednesday, February 27 2008 - 02:06 AM WIB
?ExxonMobil remains committed to progressing the development of the Natuna resource and maximizing its value in partnership with Pertamina and the Government of Indonesia,? ExxonMobil Oil Indonesia Inc?s (EMOI) Communication Manager Deva Rachman said in a statement.
EMOI had recently a letter from the government on the block, she said, adding that ?we are currently evaluating the content of that letter in the context of our discussions regarding the Natuna PSC.?
Several governmental officials have said the government would transfer the ownership of the block to state owned oil and gas company PT Pertamina after two years of negotiations with the American company on its contract failed to bring results.
On Feb. 19, 2008, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government had officially asked Pertamina to prepare plans for the development of the block.
EMOI and the government were involved in negotiation on the block after the latter claimed that the former?s rights were terminated in 2005 and the firm had failed to show any progress in developing the field. EMOI denied the claim, saying it had spent approximately $400 million for exploration of the field, which gave it the right to an extension until 2009.
EMOI noted on Tuesday that it still believed there could be a solution to the dispute that would satisfy all parties.
?We have been in discussions with the Government within the framework of the Natuna PSC and believe these are appropriate structures that would advance the project in a manner that is satisfactory to all parties,? Deva said.
She noted that ExxonMobil?s technology and experience made it ?uniquely positioned? to develop the block..
?ExxonMobil is uniquely positioned to develop this project quickly and efficiently in partnership with Pertamina and will bring our unique technologies, proven large scale project execution capability, and production experience with complex gas projects similar to Natuna.
The block has around 222 trillion cubic feet (TCF) of gas reserves, of which about 46 TCF is thought to be commercially recoverable. The gas has high corbondioxide content ? something that makes the project needs sophisticated technology and huge investment to develop. (Denny)