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ExxonMobil withdraws from Natuna Gas Consortium
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President Joko “Jokowi” Widodo (center), accompanied by Navy chief of staff Adm. Ade Supandi (left) and other senior officials, inspects the warship KRI Imam Bonjol 383 after a an on-board Cabinet meeting in the Natuna waters, Riau Islands, on June 23, 2016. (Courtesy of Setpres/Krishadiyanto)
T
he Energy and Mineral Resources Ministry has announced that ExxonMobil has withdrawn itself from the Natuna Gas Consortium after studying the results of a feasibility study conducted on the block by the consortium’s members.
The other two consortium members are state-owned energy company Pertamina and Thailand’s PTT EP.
“The withdrawal is based on its own calculation. We will summon Exxon next week,” said the ministry’s Oil and Gas Director General I Gusti Nyoman Wiratmaja in Jakarta, as reported by tempo.co on Wednesday.
Exxon’s vice president of public and government affairs Erwin Maryoto confirmed the withdrawal. “We are still committed to operating and finding business opportunities in Indonesia,” said Erwin, without elaborating on the reasons for the withdrawal.
Exxon was a concession holder of the East Natuna Block together with Natuna D-Alpha in 1980, but Pertamina took over control of the block in 2008.
Meanwhile, Pertamina upstream director Syamsu Alam stressed that the results of the feasibility study would be handed over to the Energy and Mineral Resources Ministry to be used as a reference for managing the block, particularly for deciding on incentives for the contractors.
Based on the basic reference of the gross split scheme, the contractors will get 45 percent of the benefits of gas exploration, but they may get more after considering various issues, including the investment needed for exploration and exploitation.
The East Natuna block, formerly known as D-Alpha, is located in the province of Riau Islands. With total proven reserves of 46 trillion cubic feet (tcf) of gas, it is one of the largest gas reserves in Asia. (bbn)
