Pertamina denies seeking to close Natuna project

State oil and gas company Pertamina denied on Monday the press reports that it was seeking to terminate the giant gas project owned by American energy firm ExxonMobil.

Pertamina's exploration and production director Gatot K. Wiroyudo told reporters what Pertamina was seeking to close was the special body formed by former President Soeharto to supervise the project.

The special body named the Natuna Project Execution Team was formerly chaired by then State Minister of Research and Technology BJ Habibie. The body is now being chaired by former Pertamina's president Feisal Abda'oe who replaced Habibie after the latter was appointed as President.

The project is called the Alpha Block or East Natuna project. The area located in east of the West Natuna islands in South China Sea is believed to contain one of the world's largest natural gas resource of 46 trillion cubic feet.

According to the local press reports, Pertamina proposed to terminate the project on the thought that the majority owner of the project -- American energy firm Exxon Mobil -- was not serious in continuing the project.

Gatot said Pertamina did not object to the project as long as it was placed in the normal production sharing contract system.

He said Pertamina had sent a letter to President Abdurrahman Wahid, asking him to revoke the facilities given to the owners of the project. But, thus far, the President had not yet responded to the letter.

The Alpha Block project is 76 percent owned by ExxonMobil and 24 percent by Pertamina. (*)