Pertamina to get 40% of Natuna gas

State oil and gas company PT Pertamina said it would get 40 percent of the future gas output of the Natuna D Alpha block in Natuna sea while the government is entitled to the remaining 60 percent.

Pertamina?s President Director Ari H. Soemarno confirmed that the 40:60 split in favor of the government had been approved by Vice President Jusuf Kalla.

Ari said that efforts were underway to prepare terms of reference (TOR) for the company to set the criteria for the selection of partners to develop the block.

According to Ari, aside from being strong financially, the potential partners should be highly capable in terms of technology given that an advanced technology was needed to separate carbon dioxide (CO2) from the gas and inject into the soil. ?Besides, the block is under the sea with a depth of 3,000 meters,? he said.

Several oil companies have shown interest in teaming up with Pertamina in developing the block. They include France?s Total, Royal Dutch Shell, StatOil, Malaysia?s Petronas, Thailand?s PTT, PetroVietnam and Italy?s ENI, he added.

The block is estimated to have recoverable gas reserves of up to 46 trillion cubic feet, of which 70 percent contains CO2 content. Total investment in the block is estimated to reach over US$25 billion. The company is expected to start operation in 2018. (*)