Petronas seeks nod to develop Natuna D-Alpha block

March 14, 2008
Malaysia's Petronas has expressed interest in developing Indonesia's Natuna D-Alpha block, whose operator status remains in limbo.

Eric Watkins
Senior Correspondent

LOS ANGELES, Mar. 14 -- Malaysia's Petronas has expressed interest in developing Indonesia's Natuna D-Alpha block, whose operator status remains in limbo.

"We are still waiting for the government's decision on this block, as it is now under the government's control," said Petronas spokeswoman Non Saputri. "We are interested in both upstream and downstream sectors," she said.

Petronas is one of several international oil companies seeking to develop the block, which reportedly holds gas reserves of 46 tcf, making it the largest gas field in Southeast Asia. It has a carbon dioxide content reported to be about 71%. According to reports, other interested firms include Royal-Dutch Shell PLC, StatoilHydro, and PetroChina.

Interest in Natuna spiked after Indonesia decided to give state oil and gas firm PT Pertamina an opportunity to take over the concession from ExxonMobil Corp. and allowed it to seek partners. The government and ExxonMobil have been disputing the company's contract extension covering the block.

Pertamina was given 3 weeks to develop a proposal proving it has the capability and technology to develop the block.

Contact Eric Watkins at [email protected].