Pertamina asks for government guarantee for Natuna

The Jakarta Post, Jakarta | Wed, 02/18/2009 12:19 PM 

Oil and gas regulatory body BP Migas disclosed Wednesday that state oil company Pertamina had asked for a government guarantee to seek loans to finance the development of Natuna D Alpha natural gas block. 

BP Migas president R Priyono told Antara news agency that Pertamina needed the government support as the investment cost was too big for the company to bear alone, around US$40 billion. 

"Pertamina has asked for a trustee letter from the government, just as the government did with the Tangguh project,” Priyono said, referring to the development of the Tangguh gas field by BP. 

Pertamina is currently looking for partners to develop the Natuna D Alpha block. Among the candidates for partners are Chevron, Total, ExxonMobil, StatoilHydro, CNPC, Shell, Petronas and ENI Spa. 

Pertamina wants to take a majority stake of at least 40 percent interest in the block and become its operator.