Indonesia hasn't decided on ConocoPhillips share for Aceh gas<\/p>\n
Soraya Permatasari and Grace Nirang, Bloomberg\/Jakarta<\/p>\n
Indonesia has not decided whether to give ConocoPhillips, the
\nthird-biggest U.S. oil company, a bigger stake to develop a gas
\nfield in the northwestern province of Aceh, Indonesia's
\nCoordinating Minister for Economy Dorodjatun Kuntjoro-Jakti said
\non Monday.<\/p>\n
ConocoPhillips and Exxon Mobil Corp. hold a so-called gas
\nproduction-sharing contract in the Block A gas field.
\nConocoPhillips is also the field's operator. Under the current
\ncontract, the Indonesian government gets 70 percent of the gas
\nproduced at the field, leaving the two companies with 30 percent.<\/p>\n
The two companies have said their share is too small to make a
\nprofit as they have to increase spending to remove high levels of
\ncarbon dioxide and sulfur found in the gas.<\/p>\n
"We can't decide by ourselves," Kuntjoro-Jakti told reporters
\nin Jakarta after a cabinet meeting. "There's a need for other
\ninstitutions, including the parliament, to be involved in this
\ndecision."<\/p>\n
The field can begin production by 2008 should the next
\nIndonesian government reach an agreement with ConocoPhillips, he
\nsaid. Susilo Bambang Yudhoyono won Indonesia's presidential
\nelection after the former general garnered support from three-
\nfifths of voters, the General Election Commission said on Monday.<\/p>\n
Indonesia in February asked ConocoPhillips and Exxon Mobil to
\nstart developing the Block A field to meet supply shortages at
\nits oldest liquefied natural gas plant.<\/p>\n
The field is located in Aceh, a province on the northern tip
\nof Sumatra island, where rebels have been fighting for
\nindependence since 1976. Indonesia's government has been trying
\nto win support in Aceh.<\/p>\n
Supplies of natural gas to the PT Arun NGL plant fell after
\nIndonesia ordered some of the natural gas produced at another
\nfield operated by Exxon Mobil to be diverted to fertilizer-makers
\nin the province.<\/p>",
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