NOV
'92
10:07 DTI OT2-2. 071 215 4701
Appendix 2
P. 7/7.
BRIEFING PAPER
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THE NATUNA OIL FIELD INDONESIA
Indonesian oil and gas production has been sufficient to meet local demands over the last ten years, the drilling has taken place in shallow waters, in relatively clement weather and the production platforms have been designed to suit simple designs and small platforms of about 12,000 tons.
The discovery of the Natuna fields with capacity several times that of the North
Sea, coupled with an Indonesian desire to expand their infrastructure and economy by and exploiting the Natuna fields, offers certain challenges opportunities. TO exploit this field commercially will require much larger and more complex production platforms to be produced in about one third the time being achieved locally.
the The attached figure illustrates the probable scope and investment which will be extended into the next century which will exceed US$27 billion, making it probably the largest single offshore project in the world.
The latest technology in the design and manufacture of production platforms in deep water with difficult weather conditions emanates from the North Sea and is in the hands of companies such as AMEC who have supplied 70% of the North Sea platforms.
The experience and proven track record to acquire a major role for the UK offshore industry and companies like AMEC exists, and the opportunity is enormous and will carry on for 15 years. However, Indonesia is a very
very politically driven and sensitive place and any successful company, in addition to technical skills, must have the right political and commercial connections.
AMEC are in the process of developing the political and commercial inside track and need to be seen to be supported by HMG in general and the Department of Trade & Industry in particular to have any chance of success.
Consequently we would like to take advantage of any Ministerial visit to increase our knowledge and to be seen to be a politically favoured UK company. This, of course, cannot be real but it is important that the Indonesians will interpret it that way.
I would be delighted to discuss or amplify any of the points raised if you think that it is necessary.
BMcCann 10/11/92
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