Indonesia’s upstream regulator SKK Migas has invited players with deep pockets and the relevant technical expertise to help national oil company Pertamina exploit the giant East Natuna field — South-East Asia’s largest undeveloped gas resource.

SKK Migas chairman Dwi Soetjipto wants new investors to come on board the East Natuna (formerly Natuna D-Alpha) project, which contains at least tens of trillions of cubic feet of gas, albeit with a very high carbon dioxide content of about 72%.

“Pertamina has had discussions several years ago about the [project] economics," Dwi said on the recent Indonesian Oil & Gas Upstream Outlook webinar.

"Maybe if other investors are interested, we can discuss it with Pertamina so that [East] Natuna will become a giant gas reserve."

Further appraisal work will be needed but preliminary evaluation put in-place reserves at 222 trillion cubic feet of gas, of which 46 Tcf has been deemed recoverable.

Dwi stopped short of saying what incentives and fiscal support might be available for any companies that were willing to come on board.

However, one leading regional upstream consultant said he thinks it is “highly unlikely” East Natuna will be developed in the near or medium future.

“Given the content of the CO2 in the reservoir and the current industry focus on decarbonisation, the project will require significant investment in technology to mitigate emissions associated with any potential development,” the consultant told Upstream.

“I don’t think any company cognisant of the current focus on sustainability would be able to justify progressing the development with existing technology and in the current price environment.”

The Jakarta administration has tried for decades to get the field developed — Natuna D-Alpha was discovered back in the 1970s — but any such project would cost many billions of dollars and require technology to cope with the CO2.

Production of some 8 billion cubic feet per day of gas has been touted from East Natuna, which is more than Indonesia’s total output.

Development scenarios that have been evaluated over the years include production barges — which were deemed less expensive than fixed platforms — with volumes being sent to customers either as liquefied natural gas or via pipeline.

Industry heavyweights held negotiations with Pertamina over the project before walking away. These included supermajors ExxonMobil — the former asset operator — and Total, Thailand’s national upstream company PTT Exploration & Production (PTTEP) and Malaysia’s national oil company Petronas.

In 2107, deputy minister for energy & mineral resources Arcandra Tahar issued his own public plea for East Natuna: “We will offer it to anyone interested. Whoever shows interest … will be more than welcome.”

Arcandra was speaking just days after PTTEP and ExxonMobil formally exited a consortium with Pertamina that had been evaluating appraisal and development options for the remote asset.

Field Development

Indonesia invites players to exploit giant gas asset