Purnomo warns ExxonMobil over Natuna gas field development

Minister of Energy and Mineral Resources Purnomo Yusgiantoro warned ExxonMobil to start developing the Natuna D-Alpha gas field in the Natuna Sea or the government will revoke the company's contract over the giant block.

Purnomo said Tuesday that ExxonMobil was given until January 8, 2007 to start development activities.

"Until now there is no production activities. We'll wait for another four months and we'll talk again. And if by January 8, 2007, it (ExxonMobil) fails to fulfill the requirement, we'll terminate (the contract), it (ExxonMobil) must relinquish (the asset)," he told reporters.

ExxonMobil could not be immediately reached for comments.

Exploitation of the resources is a complex technical challenge and high cost due to the large size of the field and a gas composition of approximately more than 70 percent carbon dioxide.

The Natuna D-Alpha gas field, located approximately 850 miles from Java, was discovered in 1973 and has estimated recoverable hydrocarbon resources of 46 trillion cubic feet (TCF) of natural gas, while the production sharing contract for the development of the gas field was signed in January 1980.

ExxonMobil has a 76 percent share in the Natuna gas field PSC, with PT Pertamina holding the remaining 24 percent. (Godang)