Pertamina, Petronas to sign MoU on East Natuna gas project

State oil and gas company Pertamina said on Monday that the company will sign memorandum of understanding with Malaysian state oil and gas company Petronas on the possibility of the latter?s participation in the giant gas project in Block D- Alpha production sharing contract (PSC), offshore East Natuna.

Iin Arifin Takhyan, Pertamina?s upstream director told Petromindo.Com that the MoU would be signed on March 18.

Iin earlier said that Petronas was seeking to secure gas supply of 1 billion cubic feet (BCF) per day from the giant gas field starting 2010, and was also seeking for upstream participation.

East Natuna's gas field is estimated to hold total reserves of 140 trillion cubic feet (tcf), though some 72 percent of the reserves contain carbon dioxide, which complicates the development and increases costs.

US oil giant ExxonMobil, through its subsidiaries Exxon Natuna Inc. and Mobil Natuna Inc., holds 76 percent interest in the block, with Pertamina holding the rest

An official from ExxonMobil earlier said that the economic volume to go on with East Natuna development was at least 1 BCF per day.(godang)