Natuna D-Alpha gas field development pact nears

Indonesia and ExxonMobil Corp. are nearing an agreement to renew their contract for development of Natuna D-Alpha gas field in the Natuna Sea, about 140 miles east-northeast of Natuna Island.

Jan. 3, 2008

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 3 -- Indonesia and ExxonMobil Corp. are nearing an agreement to renew their contract for development of Natuna D-Alpha gas field in the Natuna Sea, about 140 miles east-northeast of Natuna Island.

The two sides are now finalizing the wording of the agreement under which the government is set to secure a production split, according to Energy and Mineral Resources Minister Purnomo Yusgiantoro.

Under the former contract, ExxonMobil had a 100% production split (OGJ, Nov. 21, 1994, p. 30). However Purnomo said the government will seek a greater share for state-owned PT Pertamina. He did not say how much the government is seeking.

According to Indonesian state media, the Natuna Block is believed to have reserves amounting to 46 tcf of recoverable gas.

Contact Eric Watkins at [email protected].