Pertamina has no technology to develop Natuna gas block

Pertamina's president director Ari H. Soemarno has admitted that the state owned oil and gas company has no technology capability to develop the Natuna D-Alpha gas block.

"Pertamina cannot develop it with its own resources, because besides it does not have the technology capability, the development of the gas block is very costly," Ari was quoted as saying by Republika on Saturday.

Unlike other fields in Indonesia, the Natuna D-Alpha gas block has high carbon dioxide content. It means that the development of the gas field with such special characteristic does not only require sophisticated technology but also a lot of funds, he said.

According to Ari, only a few oil and gas companies in the world have the technology and the financial power to develop the field. Such companies include Exxon. But it is the government's right to decide which companies will be chosen to develop the gas block, he added.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said earlier this week that the government was considering three options for the future of the Natuna D Alpha gas block; to retender the contract, give the exploration rights to state-owned oil firm PT Pertamina or to renegotiate the deal with Exxon. (*)