Eric Watkins
Senior Correspondent
LOS ANGELES, Sept. 11 -- Indonesia Vice-President Jusuf Kalla has advised state-owned PT Pertamina to seek a new partner if ExxonMobil Oil Indonesie fails to carry out its contractual obligations to develop the Natuna D-Alpha natural gas block.
The offshore project east of Natuna in the South China Sea—a joint venture of ExxonMobil Corp. 74% and Pertamina 26%—reportedly has been delayed for several years due to lack of funds.
Kalla said Pertamina will need a new partner with more advanced technology to develop the reserves, but he also acknowledged that the search for a new partner would be difficult as few oil companies could offer the superior technology needed.
It is the second warning in less than a week from Indonesian officials.
Last week, Energy and Mineral Resources Minister Purnomo Yusgiantoro said the Indonesian government would cancel ExxonMobil's contract at the Natuna D-Alpha block if the firm does not meet a Jan. 8, 2007, deadline to begin production from the field.
For their part, ExxonMobil officials said they have until 2009 to begin production under terms of the company's production-sharing contract with Pertamina. Last December, ExxonMobil Oil Indonesie Pres. and General Manager Peter J. Coleman said the company was proceeding with a 4-year plan to supply foreign buyers with gas from the block by 2014.
Contact Eric Watkins at [email protected].
