PetroChina eyes East Natuna project
Thursday, July 20 2017 - 09:46 AM WIB
PetroChina is approaching Indonesia?s state-owned oil and gas firm PT Pertamina to become a new partner in the consortium assigned to develop the gas-rich East Natuna block in Riau Islands Province after ExxonMobil decided to walk away from the project, according to a source.
?After ExxonMobil decided to pull out from the project, PetroChina quickly approached Pertamina,? the source told Petromindo.com on Thursday. ?PetroChina is ready to takeover ExxonMobil?s position (in the consortium).?
Vice President for Relations and Support at PetroChina, Budi Setiadi, could not confirm the news. ?We?re waiting for direction from our head office,? he told this portal.
ExxonMobil announced Tuesday that after completing the market and technology review, it decided to pull out from the East Natuna project as the company believes that the project is not commercially feasible under the current terms and conditions.
The government has assigned a consortium led by Pertamina to develop the East Natuna block. ExxonMobil was part of the consortium together with Thailand?s PTTEP.
Pertamina Upstream Director Syamsu Alam said on Tuesday that the company would have to find a new partner to replace ExxonMobil as the project is quite risky and requires huge funds to develop.
The government has been pushing Pertamina to quickly develop the East Natuna block, located off Natuna Island bordering with the South China Sea, in a bid to assert the country?s ownership over an area that China said was subject to overlapping claims. The block is believed to hold one of the world?s largest gas reserves.
The Ministry of Energy and Mineral Resources said on Wednesday it plans to hold talks with ExxonMobil to discuss the company?s decision.
Editing by Reiner Simanjuntak