Natuna gas project to go ahead

Natuna gas project to go ahead

TOKYO (Reuters): Key members of a Japanese consortium due to
develop Indonesia's Natuna natural gas field said yesterday they
were not reviewing their participation in the project despite the
escalating social unrest in Indonesia.

"There's absolutely been no move of that kind," a consortium
source said.

A consortium of 12 Japanese companies is due to buy a stake in
the South China Sea gas project, which is one of the world's
largest gas fields, from Indonesia's state oil firm Pertamina.

The Japanese companies are still waiting for Indonesia to
complete drafting a contract for the Japanese consortium to buy a
13 percent stake in the Natuna project.

The terms of the deal will be based on those used when Mobil
Corp bought a 26 percent stake in the project several years ago,
Japanese industry sources said.

Japanese company officials said, however, that the social
unrest in Indonesia could very well be slowing the pace of
business at Pertamina.

Some officials said that they were concerned that the future
of the project could be threatened if Indonesian President
Soeharto fell from power.

He said he has heard that development of the Natuna gas field
enjoyed Soeharto's blessing because it had the backing of Vice
President B.J. Habibie.

Officials at other companies said, however, that they believed
the project would be maintained regardless of a possible change
in power because Natuna was a national project.

"There's no other energy project that could possibly replace
Natuna," another official said.
T he Japanese consortium is composed of three exploration
companies, eight trading companies and state-owned Japan National
Oil Corp.