Natuna project needs review: Gus Dur

President Abdurrahman Wahid has ordered state oil and gas firm Pertamina and other related parties to review the multibillion-dollar Natuna gas project in Riau because of problems in marketing the gas.

Pertamina president Baihaki Hakim told journalists after meeting with Abdurrahman that liquefied natural gas from the Natuna project could only be sold in the next 10 years.

"The President asked Pertamina, the Ministry of Mines and Energy and the Agency for the Assessment and Application of Technology (BPPT) to review the marketing of Natuna products," Baihaki said.

He said the US$40 billion project as a whole needed to be reviewed because the situation was much more different now than it was five years ago when it was launched.

Citing an example, the revenue-sharing ratio of 60:40, of which 60 percent would go to Exxon Mobil Corp. and 40 percent to Pertamina, was no longer attractive to investors.

Pertamina, nevertheless, was reportedly preparing to end the contract with Exxon Mobil to develop the Natuna D-Alpha gas block because the investor failed to secure funds for the project.

But Baihaki rejected the rumors and said that Pertamina would not revoke the contract. "There will be no retender (of the project) until 2004," he said.

In the meeting with the President, Baihaki was accompanied by Minister of Mines and Energy Susilo Bambang Yudhoyono and the chairman of the Natuna Development and Management Agency, Faisal Abda'oe.

During the meeting, Baihaki said Faisal told the President of his decision to resign as chairman of the agency for health reasons. (*)