Indonesia to Ink Natua Gas Block Deal

Indonesia will sign a production sharing contract with the Natua Consortium for the development of a large natural gas block in the eastern Natua Islands later this year, Energy and Mineral Resources Minister Jero Wacik said on Tuesday, Jakarta Globe reported.

The Consortium is made up of Pertamina, ExxonMobil, Total E&P Indonesie, and PTTEP Thailand. Pertamina and Exxon each holds a 35 percent participating interest, while Total and PTTEP each hold 15 percent.

The news report said that the government and Consortium are still in negotiating a potential tax waver or tax holiday for the venture.

According to Jakarta Globe, the government is prepared to offer a tax holiday of five years, once production begins in 2024.

The East Natuna block is estimated to hold 222 trillion cubic feet of gas reserve, with a 70 percent CO2 content. The Block will yield an estimated 1,200 million cubic feet of gas per day for 30 years.