Pertamina seeks extension of Natuna D-Alpha gas field contract
Friday, September 24 2004 - 02:28 AM WIB
State oil and gas company PT Pertamina and its partner Esso Natuna will ask for the extension of contract to operate the Natuna D-Alpha gas field, and continue the development of the gas field in 2005, Bisnis Indonesia reported on Friday.
"We will ask for the extension of the contract and resume development of the gas field in 2005," said the deputy president of Pertamina Mustiko Saleh at a hearing with the members of the House of Representative.
Mustiko said that development of the gas field had been stopped awaiting for the increase in the gas price. "It was not because of the failure of the exploration, but because the development is still economically unfeasible," he said.
He estimates that the gas price was expected to further increase next year and the price increase would make the project would be economically more viable.
The government said earlier that it would take over the operation of the Natuna D-Alpha if its operator did not ask for the extension of the contract, which would expire in 2005.
The Natuna D-Alpha gas field is jointly owned by Pertamina with 24 percent interest and Esso Natuna, a subsidiary of ExxonMobil, with 76 percent. The 10-year contract for the development of the field was signed in 1995. Gas reserves in place of the field are estimated at 222 trillion cubic feet (TCF), but excluding CO2, the reservoir only contains about 46 TCF of sales quality gas. (*)