President asks Pertamina to operate Natuna oil block
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has asked state oil company PT Pertamina to be ready to exploit natural gas reserves in the Block D Alpha Natuna area in Riau Islands province.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Tuesday Pertamina was given three weeks` time to state its readiness to the president.
"The president asked Pertamina to be ready after two years of negotiations with Exxonmobil (on operating the block) have failed to yield an agreement," Purnomo told the press after attending a limited cabinet meeting.
He said there had been eight major issues on which the government and Exxonmobil could not arrive at an agreement with three of them relating to the law.
"When we have to abide by the law, we cannot do otherwise," the minister said, adding that taxation matters, the contract period, provision of a governmental guarantee and production-sharing were among the eight issues over which the talks had deadlocked.
"The government will soon send a letter to Exxonmobil in relation with the decision that it is difficult to find a way out of the eight pending issues," he added.
If Pertamina finally agreed to manage the exploitation of natural gas in the Block D-Alpha Natuna area in Riau Islands, it would be operating the largest natural gas production site in the world with an investment of more than US$30 billion.(*)
Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Tuesday Pertamina was given three weeks` time to state its readiness to the president.
"The president asked Pertamina to be ready after two years of negotiations with Exxonmobil (on operating the block) have failed to yield an agreement," Purnomo told the press after attending a limited cabinet meeting.
He said there had been eight major issues on which the government and Exxonmobil could not arrive at an agreement with three of them relating to the law.
"When we have to abide by the law, we cannot do otherwise," the minister said, adding that taxation matters, the contract period, provision of a governmental guarantee and production-sharing were among the eight issues over which the talks had deadlocked.
"The government will soon send a letter to Exxonmobil in relation with the decision that it is difficult to find a way out of the eight pending issues," he added.
If Pertamina finally agreed to manage the exploitation of natural gas in the Block D-Alpha Natuna area in Riau Islands, it would be operating the largest natural gas production site in the world with an investment of more than US$30 billion.(*)