Pertamina picks ExxonMobil as Natuna partner

State oil, gas company PT. Pertamina (Persero) said on Friday it has signed HoA with US oil, gas giant ExxonMobil Corp. to jointly operate Natuna D Alpha giant gas block in Natuna sea.

?The HoA was signed on Friday, witnessed by Minister of Energy and Mineral Resources Darwin Saleh,? Pertamina Spokesperson M. Harun said.

Harun said ExxonMobil would not be its only partner in the block. ?Talks with other (potential) partners are ongoing,? he said without giving detail.

?ExxonMobil is pleased to confirm to have signed HoAwith Pertamina signifying ongoing progress in negotiations for a new PSC to support commercialization of the Natuna Resources. We look forward to working cooperatively to optimize the development of this wqorld class and technically challenging resources,? Mike Cousins, VP Exploratyion ExxonMobil Corp. said.

Industry sources said that the other two partners may be French giant Total SA and Malaysia?s Petronas.

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 but with high CO2 content.

Pertamina CEO Karen Agustiawan has earlier said 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 partner. Karen said Pertamina and the partner(s) might form a Joint Operating Committee to co-operate the block. (godang)