Article: Indonesia: Pertamina awarded Natuna block; ExxonMobil talks fail.

Byline: shabnam05

Indonesia's energy and mineral resources ministry has awarded state-owned PT Pertamina the rights to develop the Natuna block in the South China Sea, including the Natuna D-Alpha gas field in Riau islands province.

The award followed an impasse in negotiations with ExxonMobil Corp. over a contract extension. Originally, ExxonMobil held a 74% stake in the block, while Pertamina held the remaining 26%.

Pertamina will carry out a feasibility study and develop the site, according to Karen Agustiawan, upstream director. The block is estimated to hold 40 tcf of gas, making it one of the biggest gas reserves in Asia.

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