GOVT ASKS PERTAMINA TO EXPEDITE NATUNA OIL BLOCK DEVELOPMENT

Jakarta, Dec 7 (ANTARA) - The government has asked state-owned oil and gas firm Pertamina to expedite development of the gas field in the Alpha-D Block in Natuna Island, Riau Islands province, a minister said.

"The development should not be delayed but strategic and systematic steps should neither be put in the second priorities. So, we should not be late but neither should we be too quick," Energy and Mineral Resources Minister Darwin Saleh said here on Monday.

The minister said his side was encouraging Pertamina to find business partners through an objective mechanism. Darwin said that most of Natuna's production would be exported owing to the fact that its production was big.

"Based on the law, the production should be exported if the production scale is large. Of course some of the production should also be for domestic consumption," he said.

According to the minister, domestic market was restricted to large scale production in the long run so that an export market was needed.

"Natuna needs a market guarantee in the long run, namely above 20 or 25 years which is extendable based on regulations in force," the minister said.

In a limited cabinet meeting in 2008, the government decided to transfer of the management right on Natuna oil block to Pertamina, following the end of Exxonmobil contract.

Based on the regulation, if Pertamina managed the gas field, the production sharing would be 60 percent for the government and 40 percent for pertamina.

But the government now is looking for a partner to manage the Natuna gas field. There were two reasons why Pertamina was seeking for a partner to develop Natuna, namely find high technology and big capital.

Pertamina already has a list of eight companies which could serve as a partner of business in the Natuna project.

The eight companies are Exxon, Shell, StatOil, Chevron, Total, CNPC, Eni and Petronas.***2***