www.chinaview.cn, Xiong, 2009-01-08 16:27:40
JAKARTA, Jan. 8 (Xinhua) – Exxon Mobil has submitted a plan to the Indonesian government to develop huge gas field Natuna D-Alphaon Java island of Indonesia, Senior Vice President of Exxon Mobil Indonesia Maman Budiman said here Thursday.
The U.S. giant oil and gas firm, which had controlled the gas block since 1990s, has terminated the offshore project because of the dispute on the split of the gas production and the contract term. The Indonesian government had said that the contract of the firm had already been expired, but the company said that it would expire until Jan. 9.
The government then appointed the state-owned Pertamina to develop the block after it scrapped Exxon Mobil's operating rights, but Pertamina lacks capability to develop the project in the deep waters, which needs approximately 40 billion U.S. dollars.
"We have the capability as we own the technology," Budiman told Xinhua by phone.
Budiman said that the Exxon had submitted the plan to the Indonesian government to in December to develop the block, in which over 45 trillion cubic feet out of its about 222 trillion cubic feet total gas reserve are believed to be commercially recoverable.
"We have submitted the plan to BP Migas (oil and gas watchdog) and Energy Ministry at the end of last month," he said.
"The field is still commercially valuable and feasible," said Budiman.
Indonesia, the third larger liquefied natural gas exporter in the world, is trying to entice with explorers to develop oil and gas areas to comply with rising energy demand and make up the loss of production due to aging well and lack of new investment.
The increasing of Indonesia's economic activities leads to rise of demand of energy, particularly oil and gas.
Related Article:
Exxon's rights in Natuna since 2005 now void: Ministry
Uncertainty over Natuna looms as ExxonMobil fights back
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