Exxon still hopeful for deal on Indonesia's Natuna gas field
ExxonMobil Corp was hopeful that it could still reach an agreement with Indonesia over its contract to manage a major gas field despite the government saying talks had stopped, a spokeswoman said Wednesday.
By Agencies |
JAKARTA: ExxonMobil Corp was hopeful that it could still reach an agreement with Indonesia over its contract to manage a major gas field despite the government saying talks had stopped, a spokeswoman said Wednesday.
The head of the government's negotiating team, Kardaya Warnika, said on Monday that talks over the Natuna-D block had been halted with the US oil giant and he had informed the government that no agreement could be reached.
Indonesia terminated a production sharing contract with Exxon for the field off the west coast of Borneo in 2006 claiming the company had failed to push ahead with its development, in a move that alarmed foreign investors.
But ExxonMobil Corp spokeswoman Deva Rahman told AFP that "we are still in negotiations."
Asked about Warnika's statement, she said the company could not comment. "But what we can say is the talks are ongoing and we have a willingness to engage in further discussions on the contract with the government," she said.
"We're hopeful that the negotiations will be concluded and we have indicated our willingness to engage in discussions with the government for a win-win solution on the contract of Natuna."
Warnika could not immediately be reached for further comment. Exxon has argued that the basic agreement with the government, entered into in 1985, allowed for two contract extensions, each for a period of two years, after the contract expired in 2005.
The Indonesian government is arguing that the Exxon contract could not be extended since Exxon had failed to submit plans to develop the block and commercialise the gas resources.
Exxon holds 76 percent of the block, known as Natuna D-Alpha, with the remaining interest held by state-owned energy company Pertamina.
The company has said it is proceeding with its technical and marketing activities for the project, due to come on-stream in 2014, despite the dispute.
The head of the government's negotiating team, Kardaya Warnika, said on Monday that talks over the Natuna-D block had been halted with the US oil giant and he had informed the government that no agreement could be reached.
Indonesia terminated a production sharing contract with Exxon for the field off the west coast of Borneo in 2006 claiming the company had failed to push ahead with its development, in a move that alarmed foreign investors.
But ExxonMobil Corp spokeswoman Deva Rahman told AFP that "we are still in negotiations."
Asked about Warnika's statement, she said the company could not comment. "But what we can say is the talks are ongoing and we have a willingness to engage in further discussions on the contract with the government," she said.
"We're hopeful that the negotiations will be concluded and we have indicated our willingness to engage in discussions with the government for a win-win solution on the contract of Natuna."
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Warnika could not immediately be reached for further comment. Exxon has argued that the basic agreement with the government, entered into in 1985, allowed for two contract extensions, each for a period of two years, after the contract expired in 2005.
The Indonesian government is arguing that the Exxon contract could not be extended since Exxon had failed to submit plans to develop the block and commercialise the gas resources.
Exxon holds 76 percent of the block, known as Natuna D-Alpha, with the remaining interest held by state-owned energy company Pertamina.
The company has said it is proceeding with its technical and marketing activities for the project, due to come on-stream in 2014, despite the dispute.
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