Local firms invited to join in gas project
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)