Pertamina temporarily stops Natuna partner selection process
Tuesday, December 23 2008 - 01:15 AM WIB
Ari said Pertamina is seeking clarification from the government whether the block?s contract with US oil, gas giant ExxonMobil Corp. has been terminated as Pertamina had been informed that ExxonMobil is planning to submit Plan of Development (PoD) for the block.
?Pertamina wants to know about the block?s legal status before proceeding with partner selection,? Ari said.
The confusion over the Natuna D Alpha block surfaced several years ago when the government, which was angry over the fact that the US firm had yet to start developing the block, announced that its contract on the block had expired in 2005. The firm however insisted it still has rights over the block because it has extended the contract through 2009. Under the contract, ExxonMobil has 76 stake in the block with Pertamina as partner having the remaining 24 percent.
The government has also stated that Pertamina will be given right to operate the block, but thus far, the PSC contract that formally give the company right to operate the block has yet to be signed.
Pertamina has short-listed eight international companies as potential partners to develop the block. The companies include ExxonMobil, Chevron, Shell and PetroChina.
However, when Pertamina asked government to open the block?s data room to enable the participants to submit their final offers, government said it had yet received the block?s data.
Edi Hermantoro, the Ministry of Energy and Mineral Resources? Director of Oil and Gas Upstream Business Supervision, said oil and gas upstream regulatory body BPMIGAS should have issued a letter clarifying the status of the block.
"Thus far, we haven't received such letter," Edi said.
Pertamina plans to seek partners to develop the block and is preparing to farm-out 40 percent interest, Upstream Director Karen Agustiawan said earlier. (bernard)