Amien Rais prefers Pertamina taking over Cepu Block

People?s Consultative Assembly (MPR) chairman Amien Rais has called on the government to consider awarding Cepu oil block in Central Java to state oil and gas firm Pertamina, and refuse extending ExxonMobil Corp.?s technical assistance contract (TAC) for the block.

?Our main weakness is that we tend to ignore the capability of our nation. We just let everything managed by foreign parties,? Amien said in a seminar on privatization of Pertamina which was held by its labor union in Jakarta on Saturday, as reported by Suara Pembaruan daily.

Amien, who is also chairman of National Awakening Party (PAN), said Pertamina was capable to operate and manage the Cepu oil block so that the government should let it do the work.

He said the House of Representatives (DPR) should be involved in making decision on the future of the Cepu block.

ExxonMobil, through its unit Mobil Cepu Ltd, currently holds 100 percent interest in the oil block. Although its current contract expires only in 2010, ExxonMobil had asked the government to extend it by 20 years.

ExxonMobil disclosed in April that oil reserve in the Cepu block was estimated at some 250 million barrels, while state oil and gas research center said later that it amounted to 450 million barrels.

Meanwhile, Pertamina president director Baihaki Hakim said earlier President Megawati Sukarnoputri had yet to decide whether to fulfill ExxonMobil?s request. A team of five cabinet ministers, who acted as government commissioners for Pertamina, had asked her to make decision after they failed to reach an agreement on it.

Baihaki said Pertamina had asked ExxonMobil to give it between US$300 million and $400 million in compensation for contract extension. So far, the U.S. company had not given any response.

Baihaki said Pertamina and ExxonMobil officials would further discussed that matter this week. (*)