Seymour Pierce had forecast a preex pretax profit of 1

Christmas sales down 21 percent Now sees full-year loss Not to renew contract to run Harrods watch counter Shares indicated down 3 pct(Adds details) LONDON, Jan 16 (Reuters) - British upmarket jeweller TheoFennell (TFL.L) said on Friday it was expecting a full-year lossafter posting a 21 percent fall in Christmas sales and that itwas now working on downsizing the business. The company, whose customers include David Beckham and EltonJohn, said it has agreed with Harrods not to renew its contractto run the luxury department store's watch counter, although thecontract for Theo Fennell jewellery counters has been extendedfor three years. AIM-listed Theo Fennell, which had put its expansion plansunder review in December, said the downsizing measures will"significantly reduce the company's borrowing requirements." "Given the restructuring referred to and the focus on theTheo Fennell brand, the company anticipates an improvedperformance for the year ending March 31, 2010," the companysaid in a statement. It added it remains in talks regarding a third party makingan investment in Theo Fennell via new equity. Seymour Pierce had forecast a pre-ex pretax profit of 1.2million pounds ($1.78 million) for the year to end-March 2009 At 0920 GMT shares were indicated down 3 percent at 15pence (Reporting by Victoria Bryan; Editing by Rosalba O'Brien). By Muklis Ali China JAKARTA, Jan 16 (Reuters) - Indonesia has rejected aproposal by Exxon Mobil Corp (XOM.N) to develop the giantNatuna D-Alpha gas field, since it believes the contract heldby the U.S. The move, revolving around the dispute between Exxon Mobiland the government over the U.S.

major's role in the projectand over how to split the gas output, would further delay theproject's start-up, but would not end Exxon's involvement,analysts said. The Natuna D-Alpha block in the South China Sea has around222 trillion cubic feet (tcf) of gas reserves. About 46 tcf of these are thought to be commerciallyrecoverable, accounting for roughly a quarter of Indonesia'stotal commercially recoverable gas reserves. "The submission of the plan to develop the field would beaccepted if BPMIGAS and the contractor had both previouslyagreed that the field was commercially viable for developmentbased on a feasibility study," Energy Minister YusgiantoroPurnomo told reporters "We sent a letter of rejection on Jan 14," he said. BPMIGAS has responsiblity to monitor and control oil andgas contractors working in Indonesia. An Exxon Mobil Indonesia official disputed that thecontract was not in force, but said it was seeking aresolution. "We respectfully disagree that our PSC (production sharingcontract) is not effective, but we remain interested in aresolution which allows development of this resource to proceedwith the support of the Government," Maman Budiman, a seniorvice president at Exxon Mobil Indonesia, said via a telephonetext message.

"We have honoured our commitments under the PSC and willcontinue to do so," Budiman said The U.S. firm has said it had submitted its developmentplan ahead of the expiry and in line with the contract. AT ODDS OVER GAS SPLIT Indonesia has said that Exxon Mobil's contract giving it a76 percent share has already expired, whereas the energy majorhas said that the contract was valid until January 9, 2009. Indonesia has said talks with Exxon Mobil, which hascontrolled the block since the 1990s, had stopped on theoffshore gas project due to disagreements on how to split thegas output. Other unresolved issues with Exxon Mobil on theblock, which is about 1,100 kilometres (680 miles) north ofJakarta and 200 km east of the West Natuna fields that feed gasto Singapore, included the length of the U.S firm's contract. Indonesia's government has appointed state oil firmPertamina as the operator of Natuna, but the state company doesnot have the capacity to develop the gas field alone, which isestimated to need $40 billion in investment. Budiman said Exxon Mobil was in a unique position todevelop the project in partnership with Pertamina and couldbring technological expertise, proven large scale projectexecution capacity and experience with complex gas projects.