Pertamina differs with ExxonMobil over East Natuna block strategy

By Godang Sitompul

While state-owned oil and gas company PT Pertamina is focusing on pushing the government to quickly complete the production sharing contract (PSC) for the East Natuna block, in Riau Islands Province, the company is already thinking of first developing the AP structure within the block when the contract has been signed, a strategy that may differ to that of its partners.

?Our priority is now for the PSC to be signed,? said Pertamina Upstream Director Syamsu Alam to Petromindo.com on Thursday.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja Puja said August 26 that the government plans to sign the production sharing contract (PSC) for the East Natuna block in September of this year in the hope that Pertamina and its partners can quickly start develop the block.

Pertamina is teaming up with ExxonMobil and PTT Thailand to develop the East Natuna block.

A source told Petromindo.com that Pertamina wants to first drill one well in the AP Structure within the East Natuna block as the structure contains huge oil reserves.

The source, however, said that ExxonMobil has objected to the plan, saying that the foreign firm wants to first develop the AL structure which has huge gas reserves despite the existent of high CO2 content. Exxon could not be immediately reached for comment.

Editing by Reiner Simanjuntak