Military so shield Natuna gas<\/p>\n
JAKARTA (JP): Indonesian Armed Forces Commander General Feisal
\nTanjung said yesterday the military was ready to secure the
\nexploitation of the huge gas reserves in the Natuna islands in
\nthe South China Sea.<\/p>\n
\"There is nothing to worry about. We have made preparations to
\nsafeguard the project,\" Feisal said.<\/p>\n
He said the military had beefed up facilities at two airports
\n-- Simpang Tiga airport in Pekanbaru, Riau, and Subadio airport
\nin Pontianak, West Kalimantan -- to turn them into military bases
\nto protect the Natuna islands.<\/p>\n
\"Hawk fighters from Britain will be stationed at the Pekanbaru
\nairbase soon. We bought them especially to secure the project,\"
\nhe said.<\/p>\n
Minister of Research and Technology B.J. Habibie and Esso
\nExploration & Production Natuna Inc. president A.N. Crownover
\nwere with Feisal when he made the statement.<\/p>\n
Indonesia has bought 24 Hawk-100 and Hawk-200 fighters from
\nBritish Aerospace. Some arrived last year and have been operated
\nby the Air Force.<\/p>\n
In the past China was seen as a potential threat to the Natuna
\nislands because it issued a map which claimed the waters around
\nthe islands as part of its territory. It has since said the
\nislands belong to Indonesia.<\/p>\n
Analysts said another potential threat to the project's
\nsecurity could come from conflict over the adjacent, potentially
\noil rich Spratly Islands which are claimed wholly or partly by
\nChina, Taiwan, Vietnam, the Philippines, Malaysia and Brunei.<\/p>\n
Indonesia's military held a 12-day exercise on and around the
\nNatuna islands last year. The exercise involved 19,000 personnel
\nfrom all Armed Forces branches and dozens of aircraft and
\nwarships.<\/p>\n
The project is expected to become Indonesia's largest gas
\nfield. Official estimates for the field are 222 trillion cubic
\nfeet of natural gas but only 75 percent of the gas is recoverable
\nbecause of its high carbon dioxide content.<\/p>\n
Indonesia is the world's largest producer of liquefied natural
\ngas with 22.2 million tons a year. The gas comes from two gas
\nfields in Arun, Aceh and in Bontang, East Kalimantan, where two
\ngas liquefaction plants have operated since the late 1970s.<\/p>\n
Stake<\/p>\n
Habibie, chairman of the Natuna project team, said the
\nPetroleum Authority of Thailand (PTT) was competing with a
\nJapanese consortium for a stake in the project.<\/p>\n
PTT is negotiating with state oil and gas firm Pertamina on a
\npipeline project to pipe gas from the Natuna islands to Thailand
\nand wants to buy up to 15 percent of the project from Pertamina.<\/p>\n
Pertamina has a 24 percent stake in the project but plans to
\nreduce its share to 11 percent.<\/p>\n
Earlier it offered 13 percent of its stake to a consortium of
\n13 Japanese companies. But the consortium has yet to agree on the
\ndistribution of shares among its members.<\/p>\n
The consortium includes four oil companies and nine trading
\nhouses including Japan National Oil Co, Mitsubishi Corp, Mitsui &
\nCo Ltd and Nissho Iwai Corp.<\/p>\n
\"We have decided first buy, first get,\" Habibie said.<\/p>\n
The project was initially owned equally by Pertamina and Esso
\nExploration and Production Natuna Inc., an affiliate of U.S. firm
\nExxon Corporation.<\/p>\n
Pertamina later reduced its stake to 24 percent selling 26
\npercent to U.S. firm Mobil Oil which operates the Arun gas field.<\/p>\n
Esso and Mobil Oil were not willing to reduce their interests
\nbecause they expect the project to be lucrative, while Pertamina
\nwould not reduce its stake to less than 11 percent so it
\nmaintains a veto right in the project, Habibie said.<\/p>\n
Indonesian law gives owners of 11 percent or more in a project
\na veto right in matters related to operation and management.<\/p>\n
The field will start producing five million tons of gas a year
\nin 2002 and its capacity will gradually increase to 15 million
\ntons.<\/p>\n
Exxon has spent US$250 million on development research and
\nanother $100 million this year. The project needs $20 billion to
\nreach its target annual capacity of 15 million tons. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/military-so-shield-natuna-gas-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}