Natuna gas block talks with ExxonMobil to be concluded in January: BP Migas

Oil and gas upstream authority BP Migas said on Thursday talks with ExxonMobil Corp. on operating rights for the Natuna D-Alpha gas block in South China Sea is expected to be completed in January.

"We are ready to renegotiate with Exxon on Natuna D-alpha block. If we talk about the terms and conditions, then it won't be too long ... It will at least take about three months," said agency head Kardaya Warnika.

"Hopefully it could be completed in January and we want the best terms and conditions for the country, ? Kardaya said.

Government has appointed Kardaya BP Migas head to be chief negotiator for the government under a direct supervision by the Minister of Energy and Mineral Resource Purnomo Yusgiantoro. Meanwhile, Exxon has named Steven Greenlee as its chief negotiator.

Kardaya said BP Migas and ExxonMobil had held a meeting on November 13, 2006.

Government declared Exxon?s contract in Natuna D-Alpha block lapsed after the company failed to meet its commitment to develop the block.

Minister of Energy and Mineral Resource Purnomo Yusgiantoro said earlier that there are three options over Natuna D-Alpha gas block, first is opening a retender, secondly, handing over the contract to state oil and gas company PT Pertamina who owns the first right refusal scheme and the third, renegotiating for drawing up a new contract with ExxonMobil.

The Natuna D-Alpha block contains around 222 trillion cubic feet (TCF) of gas, of which 46 TCF is thought to be commercially recoverable, but the field contains about 70 percent carbon dioxide.

Pertamina has a 24 percent stake in the Natuna D-alpha block, while Exxon has 76 percent. (*)