Kalla opposes Exxon as operator of Natuna gas project

Vice President Jusuf Kalla reiteratd that American gas giant ExxonMobil Oil should not be allowed to continue operating the Natuna D-Alpha gas block in the Natuna Sea because the company?s right over the block has expired.

?I have told earlier that Exxon?s right to operate the block had been terminated, and will not be extended,? he said during a meeting with members of Muhammadiyah social organization in Jakarta on Monday.

Kalla said that the Natuna gas field should be transferred to state-owned oil and gas company Pertamina. ?Although it is difficult, Pertamina should carry out exploration activities in the gas field,? he was quoted as saying by Kontan daily. He said that Pertamina can cooperate with other companies to develop the gas field.

?It has been more than 28 years since Exxon was awarded the right to develop the Natuna field, but it had done nothing since then,? he said.

The government has handed over the block to Pertamina after the contract owned by ExxonMobil expired. The block is believed to hold 47 trillion cubic feet of recoverable natural gas.

Karen said in November last year that Pertamina is ready to farm out up to 60 percent interest in the giant block to partner(s) and did not rule out the possibility of selecting more than one partners. Karen said Pertamina and the partner(s) might form a Joint Operating Committee to operate the block. (*)