DIGIVESTASI - The Ministry of Energy and Mineral Resources (ESDM) is hosting oil and gas companies interested in conducting joint research in the gas-rich Natuna D-Alpha field. The assurance was conveyed by the Director of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutka Aliazi, after last year's auction for the field, which is part of the East Natuna field, failed to find a winner.

"Now there are those who are interested in studying together," Tutka told Bisnis (Sunday (February 18, 2024)). The Natuna D-Alpha field was auctioned on Tuesday (July 25, 2023) during the regular round of the 47th IPA Convention & Exhibition held at ICE BSD Tangerang. However, until the bidding closed on December 15, 2023, no oil and gas company was interested in developing the gas field.

Tutka explained that the ministry plans to incorporate a tax and royalty system into the high-risk contract system in oil and gas fields. However, he said the ministry is still waiting for further discussions regarding changes to the Oil and Gas Law Number 22 of 2001 (Oil and Gas Law). 

"Taxes and royalties may be more attractive, but they need a legal basis. In fact, we are waiting for last year's Oil and Gas Law, which has not yet been finished, but will come out this year. future," he said. Based on the tender documents, D-Alpha is located offshore East Natuna and has an area of 10,291.03 square kilometers. The Ministry of Energy and Mineral Resources asked bidders to make a five-year definitive commitment consisting of exploration and drilling for GGRPE.

Previously, the Ministry of Energy and Mineral Resources had transferred the management rights of two other fields in the East Natuna field, namely the Arwana field and the Barakda field, to PT Pertamina East Natuna, a subsidiary of PT Pertamina Hulu Energy (PHE). For 50 years, since its discovery in 1973, the fate of the East Natuna prospect has been uncertain.

This huge gas field has yet to be developed. In fact, East Natuna's gas reserves are the largest in Indonesia, reaching 2.5 times the size of the Masela field. However, managing this block is not easy because its CO2 content exceeds 70%. The East Natuna field has gas reserves of 222 trillion cubic feet (Tcf), based on calculations by the Department of Energy and Mineral Resources. However, if the CO2 content exceeds 70%, the amount of gas that can be produced from the block may only be around 46 Tcf.

ExxonMobil was initially interested in working on it and was granted management rights in 1980. However, due to a lack of progress, the government canceled the contract in 2007. A year later, the East Natuna field was handed over to Pertamina. ExxonMobil rejoined in 2010, along with Total and Petronas. Petronas' position was later replaced by a Thai company, PTT Exploration and Production (PTT EP). Unfortunately, the consortium broke up halfway through. ExxonMobil decided to pull out in 2017.

The reason is that US companies consider this block not worth investing in. PTT EP followed in the footsteps of ExxonMobil which also decided not to continue the consortium with Pertamina at this time. Pertamina will then process the return of Natuna D-Alpha to the government by the end of 2022. However, Pertamina retains partial control of the East Natuna field, namely the Arwana and Barrakda fields.

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