Japan slow on Natuna

Japan slow on Natuna

TOKYO (Reuter): A Japanese consortium has yet to be formed to buy a stake in the Natuna gas project from Indonesia's state- owned Pertamina although it was originally due to be set up by the end of 1996, traders said yesterday.

Pertamina now has a 24 percent stake in the giant natural gas project in the South China Sea, and plans to reduce its share to 11 percent.

Final members of the Japanese consortium have not been decided as firms interested in joining it are having a difficult time agreeing on how the 13 percent stake should be divided among participating companies, traders said.

"Naturally, more than one firm is eager to acquire a major chunk of the 13 percent," a trader said.

Nine trading houses -- including Mitsubishi Corp, Mitsui & Co Ltd and Nissho Iwai Corp -- and three exploration firms are interested in taking part in the consortium, traders said.

Japan National Oil Co (JNOC) may also join the consortium, a JNOC official said.

The Natuna project is currently owned 50 percent by Exxon Corp and 26 percent by Mobil Corp, in addition to Pertamina's 24 percent.

The Natuna gas field contains an estimated 45 trillion cubic feet (tcf) of recoverable gas.