Indonesia`s Medco Group to buy stake in Natuna gas block

Jakarta (ANTARA News/Asia Pulse) - Indonesia's Medco Group says it is ready to buy from the state-owned oil and gas company PT Pertamina more than a 10 per cent stake in the giant gas block of Natuna D-Alpha, in Riau.

Pertamina has said this will open an opportunity for local companies to take part in the development of the block, believed to have one of the largest gas reserves in the word. The government had previously awarded the project to ExxonMobil, but the U.S. oil giant failed to carry out its contract before expiry.

The block is estimated to have reserves of 46 trillion cubic feet of gas, but to have high carbon dioxide content of 70 per cent that needs higher costs and technology. The project will cost up to US$52 billion.