Clinton, Soeharto to see signing of LNG contract<\/p>\n
JAKARTA (JP): U.S. President Bill Clinton and Indonesian
\nPresident Soeharto are expected to witness the signing of a
\ncontract for a US$34 billion natural gas liquefaction project in
\nNatuna of Riau.<\/p>\n
"We are trying to put the signing of the contract for the
\ndevelopment of a liquefied natural gas (LNG) plant in Natuna into
\nthe agenda of President Clinton during his Indonesian visit to
\nattend the second leadership meeting of the Asia Pacific Economic
\nCooperation (APEC) in mid November," Minister of Mines and Energy
\nI.B. Sudjana told reporters after opening a one-day seminar on
\npower generation yesterday.<\/p>\n
Sudjana said that both the state oil company Pertamina and its
\ncontractor Esso Natuna Inc., an affiliate of the U.S. Exxon
\nCorp., are finalizing their negotiations on the development of
\nthe LNG project in Natuna -- about 1,110 kilometers (km) north of
\nhere and about 600 km northeast of Singapore.<\/p>\n
"The two parties are expected to conclude negotiations soon on
\ntwo main issues -- on taxation and the royalty payment." he said.<\/p>\n
He acknowledged that a requirement on the use of local
\ncomponents for the gas project has also been one of the difficult
\nsubjects negotiated by the two parties.<\/p>\n
The two parties have reportedly agreed on the use of local
\ncontents worth $34 billion, of which $10 billion will be
\nimplemented during the construction of the project.<\/p>\n
Esso has reportedly invested around $16 billion for the
\ninitial development of the gas field in the Natuna bloc since its
\nfirst operation in 1980. Operating under a production sharing
\ncontract with Pertamina, Esso holds a 50 percent interest in the
\nproject. The other 50 percent is held by Pertamina.<\/p>\n
The project, supported by the largest concentration of gas
\nreserves in the world, is planned to have six treating platforms,
\nsix drilling platforms (each with 36 wells), two living quarters
\nplatforms and four injection platforms.<\/p>\n
The treating platforms are designed to be capable of the bulk
\nextraction of carbon dioxide.<\/p>\n
Once the project is completed it will be able to produce up to
\n14 million tons of LNG per year. In comparison, the LNG plants in
\nArun, North Sumatra, and in Bontang, East Kalimantan, are capable
\nof producing a total of 25 million tons of LNG per annum.<\/p>\n
The gas deposits in Natuna are estimated at 45 trillion cubic
\nfeet, an Esso report said. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clinton-soeharto-to-see-signing-of-lng-contract-1447893297",
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