ExxonMobil: Pulling out of talks on Indonesia’s East Natuna gas field

Exxon Mobil’s (XOM -0.2%) Indonesian unit says it will stop “further discussions or activity” involving the country’s East Natuna natural gas block, believed to hold one of the world’s largest reserves of untapped gas.

XOM said developing the block would be “uneconomical for the company under current terms,” but it offered to help with technology and technical assistance for the project if needed, according to an energy ministry official.

XOM has said the remote field on the southern edge of the South China Sea holds ~46T cf of recoverable gas resources, although with a carbon dioxide content of more than 70%, which increases the cost of extracting useable fuel.

State energy company Pertamina had expected to sign a production sharing contract with XOM and Thailand’s PTTEP for the project last year.


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