All contracts will be reviewed: VP

The government will review all the contracts of work that had been awarded to oil and mining companies particulary with regards the conditions set in the contracts that the contractors have to meet.

This to ensure that the government would not suffer any losses, Vice Pesident Jusuf Kalla was quoted by Kompas in its Saturday edition.

The contract to operate Cepu oil and gas block is one of the contracts that fulfilled all the conditions properly. As per the contract, state oil and gas firm PT Pertamina and foreign company ExxonMobil will jointly operate the Cepu block.

This was disclosed by Kalla to reporters after the Friday prayers at the Vice Presidential Palace.

The press also asked about the government's possible move over the contract held by American energy giant ExxonMobil on the Natuna island, which has expired and reportedly gave no royalty to the government.

?In the case of Natuna, we are still studying it. And in all other contracts, we will also study them to see whether they (companies) fulfill all the existing conditions or not?? Kalla said.

While referring to the Freeport, Kalla said that the government has already set up an interdepartmental team to study whether Freeport had fulfilled all the conditions mentioned in the contract, with regards taxes, the amount of gold exports etc.

Though Kalla referred the Cepu contract as the best one, several groups criticized the joint operation by Pertamina and ExxonMobil of Cepu block. According to them, the government should have given the contract to Pertamina instead of ExxonMobil. Under the present situation the government will suffer huge losses. (*)