Pertamina in talks with majors over Donggi development

State oil and gas company Pertamina said it had held preliminary talks with several foreign companies to discuss possible cooperation to develop its Donggi gas field ion Central Sulawesi.

?Pertamina had held talks with companies including Royal Dutch/Shell, ChevronTexaco, Marathon Oil, CNOOC, PetroChina and Petronas about possible cooperation to develop the block, but thus far no decision has been made,? said Pertamina upstream director Bambang Nugroho on a sideline of IPA convention on Tuesday.

Pertamina has planned to develop Donggi into LNG plants, with production commencement seen in 1010. But thus far it had yet secured contract from buyers.

Donggi block is part of Matindok block, which also includes Senoro-Toili block, which is jointly operated by Pertamina and Exspan Nusantara. The block currently has 3.4 trillion cubic feet in proven reserves with upside potential of another 18 TCF.

Bambang said Pertamina is conducting appraisal drilling in the block in order to certify the reserves next year.

Pertamina is planning to build LNG plants with capacity of 7.2 million tons per annum in the block. (alex)