ExxonMobil walks away from East Natuna

ExxonMobil has abandoned plans to develop the East Natuna natural gas block in Indonesia, one of the largest reservoirs in the world, international media reported on Tuesday.

The decision was made after the super-major’s assessment of commercial viability and capital expenditure associated with the USD 40-billion project, Reuters reported.

The government is allegedly floating the idea of inviting ExxonMobil to renegotiate the development terms, adding incentives to ensure that the East Natuna development moves forward and is economically feasible.

“Surely Pertamina wouldn’t be able to develop the block alone, we need a partner,” Syamsu Alam, the Indonesian NOC’s upstream director, told Reuters, adding that Pertamina remains resolute in its decision to develop the project.

The East Natuna natural gas block, located in the highly-contested South China Sea, is thought to hold around 6.29 tcm (222 tcf) of wet natural gas. Of that amount, some 1.03 tcm (46 tcf) is believed to be recoverable.