Japanese firms to invest in Natuna

Japanese firms to invest in Natuna

TOKYO (AFP): Mitsubishi Corp. yesterday said a consortium comprising it and 10 other Japanese companies planned to invest about 250 billion yen (US$2 billion) in Indonesia's Natuna gas project.

The trading company said the consortium would acquire a 13 percent stake in the project from Indonesian state-owned oil company Perusahaan Pertambangan dan Minyak Nasional (Pertamina).

Of the 13 percent Japanese equity, some 2.6 percent will be held jointly by Indonesia Petroleum Ltd., Japan Petroleum Exploration Co. Ltd. and Teikoku Oil Co. Ltd.

A further 7.2 percent will be held by Mitsubishi and seven other trading companies -- Mitsui Co. Ltd., Nissho Iwai Corp., Itochu Corp., Marubeni Corp., Sumitomo Corp., Kanematsu Corp. and Tomen Corp. The balance will be held by the government-owned Japan National Oil Corp.

Mitsubishi said the Natuna field had estimated liquefied natural gas deposits of 875 million tons and was projected to have an output of 15 million tons a year when production starts early next decade.

The project is majority owned by two U.S. oil companies, Exxon Corp with 50 percent and Mobile Corp. which has 26 percent. Pertamina holds the rest. Overall development costs are estimated at about two trillion yen.