Pertamina seeks new partner for East Natuna project
Friday, July 21 2017 - 04:45 AM WIB
State-owned oil and gas firm PT Pertamina is preparing to seek a new partner in the planned development of the East Natuna block after ExxonMobil decided to pull out from the project.
The government has assigned a consortium led by Pertamina to develop the East Natuna block in Riau Islands Province. Other members of the consortium included ExxonMobil and Thailand?s PTT EP.
?Exxon has decided to pull out. We?re preparing a (new) consortium and is looking for credible partner,? said Pertamina President Director Elia M. Manik to Petromindo.com on Thursday following a meeting with Minister of Energy and Mineral Resources Ignasius Jonan.
As reported on Wednesday, ExxonMobil Indonesia Vice President for Public and Government Affairs, Erwin Maryoto said that the company has decided to move away from the East Natuna project following recent completion of the technology and market review, which suggests that the project is not commercially feasible under the current terms and conditions.
A source told this portal earlier that PetroChina is interested to assume the position of ExxonMobil in the East Natuna consortium.
The East Natuna block in Riau Islands Province, formerly called D-Alpha, is estimated to hold up to 200 tcf of gas reserves, the largest gas reserves ever found in Indonesia. However, only 46 tcf of the gas is said to be recoverable due the high CO2 element contained in the reserve. In the early phase, the consortium aims to accelerate oil production with a target of 7,000-15,000 bopd once the PSC has been signed.
Eiting by Reiner Simanjuntak