Govt sticks to its gun to get at least 60% split from Natuna

Minister of Energy and Mineral Resources Purnomo Yusgiantoro insisted on Tuesday that the government would stick to its gun to get 60-65 percent split in Natuna D Alpha giant gas block which is currently being negotiated with US oil, gas major Exxon Mobil Corp.

?If Exxon Mobil refuses, or negotiation fails, government might give the block to Pertamina, which in turn might find suitable partner(s) to develop the block,? he said.

Purnomo did not disclose the split that Exxon Mobil has proposed, but in Exxon had been given 100 percent split in its previous contract in the block, meaning that Exxon only has to pay income tax.

ExxonMobil Oil Indonesia senior official Maman Budiman declined to comment on the ground that negotiations are still ongoing.

Exxon controls a 76 percent stake in the Natuna block while Indonesian state oil and gas firm, Pertamina, owns 24 percent and would like to increase its stake to half.

Exxon and the Government of Indonesia are involved in negotiation on Natuna block after Indonesia said Exxon?s contract on the block has expired, whereas the Exxon has said the contract is valid until 2009.

The Natuna D-Alpha block has around 222 trillion cubic feet (tcf) of gas reserves, of which about 46 tcf is thought to be commercially recoverable. (godang/bernard)