PT Pertamina still seeks partners for Natuna D-Alpha
Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Aug. 6 – Indonesia’s state-owned PT Pertamina is in the process of selecting partners to develop the Natuna D-Alpha natural gas block in Riau Islands province.
Eight bidders are under consideration, among them Total SA, Royal Dutch Shell Plc, StatOil, and Chevron Corp, according to Pertamina Vice-President Omar Sjawaldy Anwar.
Petronas and PetroVietnam also were named as potential partners, while PetroChina International and Eni SPA have indicated interest in the block, which has an estimated 46 tcf of natural gas.
PT Pertamina Chief Executive Karen Agustiawan earlier this week said low oil prices are working against development of the block at the moment, saying “it will become economically viable if (the price of crude) is $85/bbl.”
Pertamina needs a partner with deep pockets to develop the reserve due to the estimated $50 billion of investment required, as well as the advanced technology needed to process the gas which has high levels of carbon dioxide.
Last year, the Indonesian government transferred the right to develop the D-Alpha gas block from ExxonMobil to Pertamina after the two sides failed to reach agreement on a new revenue-sharing deal.
But ExxonMobil remains interested, according to a company spokesperson, who said: "We know better the characteristics of Natuna D-Alpha. We know the technology to be used.”
Contact Eric Watkins at [email protected].