Pertamina may seek new partner to develop Natuna gas field

State oil and gas company PT Pertamina will look for another partner if Exxon Mobil Corp., the world?s biggest publicly traded oil company, decides to pull out from a gas area in Natuna sea that holds a fourth of Indonesia?s gas reserves. The Jakarta Post reported Friday

Pertamina is ?working together with Exxon? to develop the Natuna D-Alpha area, Ari Soemarno, president director at Pertamina, said in Singapore Thursday.

The government may terminate Exxon?s contract should the company, which operates the offshore area, fail to show commitment to produce and sell gas from the fields by January next year, Indonesia?s Energy Minister Purnomo Yusgiantoro said on Sept. 5.

?It?s difficult to develop those fields and you need a good partner with the capability to do it,? Soemarno told reporters at a liquefied natural gas conference organized by Conference Connection.

?Pertamina will look for another partner? if Exxon pulls out, he said.

Exxon is negotiating prices and other terms with Malaysia?s Petroliam Nasional Bhd. and Thailand?s PTT Pd, Maman Budiman, vice president for public affairs at Exxon?s Indonesian unit, said by telephone Thursday.

?Current high gas prices allow the gas from Natuna to compete with other gas,? he said. The company will try to abide with the government?s deadline, Budiman said.

Exploitation of the resources is a complex technical challenge and high cost due to the large size of the field and a gas composition of approximately more than 70 percent carbon dioxide.

The Natuna D-Alpha gas field, located approximately 850 miles from Java, was discovered in 1973 and has estimated recoverable hydrocarbon resources of 46 trillion cubic feet (TCF) of natural gas.

Exxon has a 76 percent stake in the block while Pertamina has the remaining 24 percent stake. (*)