ExxonMobil to Return East Natuna Work Area

Sunday, 23 July 2017 , 15:00:00 WIB -

Minister of Energy and Mineral Resoures Ignasius Jonan (left) is seen visiting a power substation in Badung, Bali, Saturday (24/6). (ANTARA)

JAKARTA, GRES.NEWS – US oil and gas company ExxonMobil – a member of the East Natuna Block Consortium – has declared that the East Natuna Work Area does not fit its portfolio due to the area’s 72 percent CO2 content. The company has sent e letter to the Minister of Energy and Mineral Resources Ignasius Jonan to state that the company will not be developing the gas field.

Vice Minister of Energy and Mineral Resources, Arcandra Tahar, said he understands and appreciates ExxonMobil’s decision as this means the field will be fully managed by PT Pertamina .

"We have told them that, if they can’t make any progress, they should return the gas field and the government will hand it over to PT Pertamina. Based on its evaluation results, the company has decided to give the field to PT Pertamina 100 percent," Arcandra said, Jakarta, Friday (21/7).

Previously, there have been debates whether ExxonMobil has rights to manage the field. There were different views between ExxonMobil and the government.

"ExxonMobil’s contract has not been clear. There were different perceptions regarding the PSC contract. And this led to uncertainty regarding the field’s management," he said.

The company has agreed to handover data they obtained since 1970s to the government. It has also agreed to provide the required technology to develop the area.

"[They are willing to provide] CO2 management technology. Oy few companies have the technology, including ExxonMobil. They have agree to help PT Pertamina to obtain the required technology," Arcandra said. (dtc/mfb)