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Indonesia to Offer Exxon Priority on Natuna Gas Field
Friday, October 20, 2006


Indonesia will give ExxonMobil priority to reach a new deal on an
operating agreement for the Natuna gas field offshore Borneo island,
following the termination of the company's earlier contract with the
government, Vice President Jusuf Kalla said Friday.

"Certainly we will renegotiate. We will give a top priority to Exxon
to discuss the matter," Kalla told a press conference.

 Related Pictures

Natuna Sea - Block A
(Click to Enlarge)

The vice president said that the next operating contract had to give
more benefit to the country, not like the earlier contract which
provide zero percent split of profits to the government.

Earlier, Indonesian Mines and Energy Minister Purnomo Yusgiantoro said
the country terminated the contract with Exxon, a U.S.-based oil and
gas company, to drill the major offshore gas field, but ExxonMobil
said that the contract stood firm as it was extendable and they were
still working to develop the field.

The minister cited that the company had failed to submit to the
regulator a plan for developing the block and selling the gas, which
has a high ratio of carbon dioxide that makes it difficult to extract.

"We consider the contract has been legally expired," said the vice president.

"The president later is going to make a policy of how the country gets
more benefit from the Natuna field," Kalla said.

The block contains around 222 trillion cubic feet (tcf) of gas.

--
***********************************
Amir Al Amin
Operation/ Wellsite Geologist
(62)811592902
amir13120[at]yahoo.com
amir.al.amin[at]gmail.com
************************************

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