Local firms invited to join in gas project

JAKARTA (JP): State Minister of Research and Technology B.J. Habibie said yesterday the government was counting on the participation of local private companies in developing a $42 billion gas extraction project in the Natuna Islands in the South China Sea.

Habibie stressed, however, that only companies that met with international standards would be selected for participation in the project.

"I don't care who's behind the company, as long as they are competent," he said after installing four officials to assist him in managing the Natuna gas project at the headquarters of the Agency for the Assessment and Application of Technology (BPPT).

Habibie, who has been appointed by President Soeharto to head the project, said that several local companies had expressed interest in taking part.

Habibie installed yesterday Feisal Abda'oe, the president of the state oil firm Pertamina, as coordinator for marketing and finance of the Natuna gas project; G.A.S. Nayoam, a former senior Pertamina official, as coordinator of the gas field development; Soelaiman Wiradidjaja, BPPT deputy chairman, as coordinator of supporting facilities; and Rear Admiral (Navy) R Mardjono as chief of the project's executive unit.

The Natuna project, billed as the world's largest gas development project to date, is jointly owned by Pertamina and Esso Natuna Inc. of the United States, with each holding a 50 percent share under a deal signed in January after 10 years of negotiations.

The Natuna gas field, located 225 kilometers northeast of Natuna Island, is estimated to contain 222 trillion cubic feet of natural gas. Only 75 percent of the gas is recoverable because of the high content of carbon dioxide. The field could yield 30.5 million tons of gas per year for 20 years. It is expected to become operational within the next 10 years.

"This mega-project must benefit the people by, among other things, involving as many local companies and workers as possible," Habibie said yesterday.

He added that he did not foresee any difficulties in finding local companies that have the competence necessary to participate in the project, from providing supporting facilities to the production process itself.

Habibie said the project would include at least six giant offshore platforms: four for production facilities and two for housing and other amenities.

The construction of the platforms alone is estimated to require about 65 tons of steel, he said.

He said half of the gas output would be exported. (rms)