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Tuesday, November 30, 2010

Development Contract of Natuna D Alpha Completed 90%

Indonesian Government and PT Pertamina has completed 90% related matters Natuna D Alpha block development. Targeted this year, signing contracts 70% block that contains CO2 gas reserves that can be performed.

Natuna is expected to be completed in the near future, and the process of completing the Natuna which has been relatively easy, to say the almost 90% complete.

Team Energy and Pertamina trying to accomplish things that hang over the Natuna with the best of it. In principle, put forward the national interest so that natural resources can be developed, but the agreement obtained also benefit the state.

Natuna Block Development requires high technology and large amounts of funds and unable to give results in the short or medium term. However, PT Pertamina will get an indirect result of his cooperation with other production sharing contract (PSC).

Until now, the number of potential partners Pertamina has been pursed to 5 from eight PSC at first. The government officially appointed Pertamina in developing the Natuna D Alpha block.

Natuna D Alpha block is located approximately 250 km from the Natuna Islands. The reserves are very large, estimated at 46 trillion cubic feet. But to develop the Natuna Block is not easy because 70% of its gas reserves contain CO2. Thus, the necessary advanced technology for the removal, disposal, and storage of carbon dioxide because CO2 can not be discarded carelessly. Investment required is also not small, estimated at about U.S. $ 52 billion.

A week ago, the government asked Pertamina to immediately deliver the elected partners to government. It is expected that elected name partners to be announced soon.

Regarding the elected partner of Pertamina, the state government gives the right to Pertamina to select more than one partner. Based on the study of Wood MacKenzie Ltd, a consultancy based in Edinburgh, Scotland, who was appointed Pertamina, there are eight multinational oil companies that fit into prospective partners Pertamina in Natuna Block. The eight world-class companies are ExxonMobil Corp., Royal Dutch Shell plc, Total SA, Chevron Corp., Statoil, China National Petroleum Corp (CNPC), Petroliam Nasional Berhad (Petronas) and Eni SpA.

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