Pertamina may pick three partners for Natuna D Alpha

State oil, gas company PT Pertamina is getting closer to pick partners to operate Natuna D Alpha giant gas block in Natuna Sea.

Sources familiar with the matter said that Pertamina would likely pick 3 out of 5 international companies that have been short-listed.

?Pertamina has sent letters to ExxonMobil, Total SA and Petronas. I think from current development, they are the most likely partners to develop the block,? one Petromindo.Com source familiar with the matter said, adding that the selection would be based on technical and geopolitical aspects.

Other two candidates are Royal Dutch/ Shell and StatOil.

The source said that the deal would also include Pertamina?s farming-in to its partners? upstream assets either in Indonesia or overseas.

Pertamina Spokesperson M. Harun earlier admitted that Exxon Mobil tops the company?s list in Natuna D Alpha partner selection.

The government has handed over the block to Pertamina after the contract owned by American oil and gas giant ExxonMobil Corp. expired. The block is believed to hold 47 trillion cubic feet (TCF) of recoverable natural gas.

Pertamina CEO Karen Agustiawan said in November 2008 that Pertamina is ready to farm out up to 60 percent interest in the giant block to partner(s) and did not rule out the possibility of selecting more than one partners. Karen said Pertamina and the partner(s) might form a Joint Operating Committee to co-operate the block.

Vice President Boediono has earlier ordered Pertamina to complete Natuna partner selection by year-end. (godang)