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Thailand' s PTTEP joins east Natuna gas exploration in Indonesia

BY DEDEN SUDRAJAT

JAKARTA -- Thailand' s state owned oil and gas company PTTEP will take a 15% stake in a consortium that is developing Indonesia' s massive east Natuna gas block, Indonesian state-owned oil and gas producer PT Pertamina said.

Pertamina spokesman Ali Mundaki said PTT EP' s stake would replace that of Petronas, which pulled out of a Pertamina-led consortium to develop the offshore block earlier this year.

Mr. Mundakir said Pertamina has signed a new partnership agreement with PTTEP, leaving Pertamina with a 35% stake, Exxon Mobil with 35% and Total with 15%.

The Indonesian government in 2008 awarded Pertamina the right to develop the block after the government had failed to reach a new revenue-sharing deal with Exxon Mobil. Pertamina in 2010 entered into an agreement with Petronas, Total and Exxon Mobil to jointly develop the gas block.

Pertamina was seeking several partners to help it develop the block, which has an estimated 46 Tcf of natural gas, making it the biggest gas reserves in Asia. The gas, however, has a high level of carbon dioxide, requiring a large investment and sophisticated technology to remove.

The Indonesian government has previously said it hoped to begin producing gas in the block as early as 2017. The new proposed composition of stock has been submitted to the government, Pertamina said, and is expected to be fully approved by this year.

Dow Jones Newswires

10/19/2012

 

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