The Indonesian unit of Exxon Mobil Corporation (NYSE:XOM) has expressed its strong stand in relation to the country’s East Natuna natural gas block. It has said that it will opposed to the idea of holding any more discussions or furthering activity. This zone according is associated with very large reserves of untapped gas.
Erwin Maryoto, the firm’s Vice President of Public and Government Affairs in an interview with one of the top media houses disclosed a critical point. He revealed that they had reached the most recent decision after the eventual completion of a “technology and market review”.
The exit of Exxon spells out that there will indeed be further delays in the development of a field that was discovered for the first time in the 1970s. The remoteness of the block and contract disputes have been pointed out by some top experts as posing major difficulties.
East Natuna field According to experts is associated with about 46 trillion cubic feet of recoverable gas resources. However, it is critical to outline that it comes with almost 70 percent carbon dioxide content and this hikes the costs of extracting the useable fuel.
The US oil major has sent out a letter to Indonesia’s government questioning its resolution to pull out of the gas block according to Yahoo.
When approached by some top journalists recently, one of the professionals working with the provider outlined, “Developing the project under current terms would make its gas too expensive, at about $10-15 per million British thermal units (mmBtu). That compares with spot prices for liquefied natural gas (LNG) in Asia that are currently less than $6 per mmBtu (LNG-AS).”
The government though finally has a word for the various concerned parties. It has expressed its uttermost dedication to inviting over Exxon in a bid to hold a discussion that will address the project one more time. It insists that it would help provide a special incentive which would eventually make the product economically viable.
Exxon wishes to climb higher to become an industry leader. It hopes to triumph to become an industry leader in future.
