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AKARTA: Oil and gas giant Pertamina will soon decide the fate of the East Natuna block, the largest gas reserve in Asia.

Pertamina president director Dwi Soetjipto said the evaluation carried out in the East Natuna oil and gas blocks would be conducted after the company completed a memorandum of understanding (MoU) with the National Iranian Oil Co. (NIOC) this month.

“After signing the MoU, we will carry out an in-depth due diligence report, including evaluation of our upstream blocks. This usually takes four months to complete,” he told reporters during a post-Ramadhan gathering at Pertamina headquarters in Central Jakarta.

The East Natuna block is located in the Natuna Islands, Riau Islands province, and boasts total proven reserves of 46 trillion cubic feet (tcf). The block holds five times more gas than the Masela block in Maluku province.

The block reportedly has a high carbon dioxide (CO2) level of 72 percent, the highest exploitation field CO2 level in the world. To remove CO2, development of the block will require advanced technology and huge investment. A consortium consisting of Pertamina, US-based ExxonMobil and Thailand’s PTT Exploration and Production (PTT EP) is exploring the area.

The Energy and Mineral Resources Ministry director general for oil and gas, IGN Wiratmaja Puja, said the government would hold a meeting to expedite East Natuna’s production. “I cannot yet confirm [when operations will begin]. We hope they begin before 2030,” he said. — JP