ID :
30032
Thu, 11/13/2008 - 15:14
Auther :
Shortlink :
http://m.oananews.org//node/30032
The shortlink copeid
PERTAMINA READY TO DIVEST 60 PCT OF NATUNA BLOCK-D ALPHA STAKE
Jakarta, Nov 13 (ANTARA) - State-owned oil company PT Pertamina said it was ready to let go 60 percent of its participating interest (PI) in the Natuna Blok-D Alpha oil field, a Pertamina official said.
Pertamina's Upstream director Karen Agustiawan said here on Thursday that the 60 percent PI portion would be allocated to several other companies.
"This means that though it owns only 40 percent stake, Pertamina will remain the major holder of the interest in Natuna Blok-D Alpha," he said.
He said that his side would invite seven to eight of the 20 major companies which had earlier expressed interest in it.
"We are going to invite them on Friday (Nov.14)," he said.
Comapnies which have previously expressed interest included ExxonMobil, Shell, Total, StatOil, Petrochina, Petronas, PTT Thailand and PetroVietnam.
Pertamina President Director Ari Soemarno said his company would select a partner which could contribute a big profit.
The Natuna Block-D Alpha project virtually needed a relatively high cost because the block-D field products have CO2 contents.
The Natuna D-Alpha block contains around 222 trillion cubic feet of gas, of which 46 Tcf is thought to be commercially recoverable, but the field contains about 70% carbon dioxide, making it expensive to develop and difficult to sell.
Indonesia and ExxonMobil signed a basic agreement in 1995 covering an estimated $40 billion to be invested in the offshore gas project in the South China Sea. However, tapping the reserves has proved difficult.
Analysts have said the cost of capturing and storing carbon dioxide was very expensive with current technology.
ExxonMobil officials could not immediately be reached for comment. Exxon Mobil has a 76 percent stake in Block-D Alpha while Indonesia's Pertamina has 24 percent.
The gas in Natuna Block-D Alpha, about 1100 kilometres north of capital Jakarta and 200 kilometres east of the West Natuna fields that are currently feeding gas to Singapore, accounts for about 25 percent of Indonesia's total gas reserves of 182 Tcf.
Pertamina's Upstream director Karen Agustiawan said here on Thursday that the 60 percent PI portion would be allocated to several other companies.
"This means that though it owns only 40 percent stake, Pertamina will remain the major holder of the interest in Natuna Blok-D Alpha," he said.
He said that his side would invite seven to eight of the 20 major companies which had earlier expressed interest in it.
"We are going to invite them on Friday (Nov.14)," he said.
Comapnies which have previously expressed interest included ExxonMobil, Shell, Total, StatOil, Petrochina, Petronas, PTT Thailand and PetroVietnam.
Pertamina President Director Ari Soemarno said his company would select a partner which could contribute a big profit.
The Natuna Block-D Alpha project virtually needed a relatively high cost because the block-D field products have CO2 contents.
The Natuna D-Alpha block contains around 222 trillion cubic feet of gas, of which 46 Tcf is thought to be commercially recoverable, but the field contains about 70% carbon dioxide, making it expensive to develop and difficult to sell.
Indonesia and ExxonMobil signed a basic agreement in 1995 covering an estimated $40 billion to be invested in the offshore gas project in the South China Sea. However, tapping the reserves has proved difficult.
Analysts have said the cost of capturing and storing carbon dioxide was very expensive with current technology.
ExxonMobil officials could not immediately be reached for comment. Exxon Mobil has a 76 percent stake in Block-D Alpha while Indonesia's Pertamina has 24 percent.
The gas in Natuna Block-D Alpha, about 1100 kilometres north of capital Jakarta and 200 kilometres east of the West Natuna fields that are currently feeding gas to Singapore, accounts for about 25 percent of Indonesia's total gas reserves of 182 Tcf.
