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.