Bojonegoro demands 10 percent share in Cepu oil field

The authority of the Bojonegoro regency in Central Java has demanded Pertamina to give 10 percent of the interest in the Cepu oil field which is currently developed by ExxonMobil Oil under a technical assistance contract with the state owned oil company, Bisnis Indonesia daily reported on Monday.

The vice chairman of the Commission C of the Bojonegoro legislative council, Onny Supriyadi, said on Saturday that the local administration had formed an oil company PT Dharma Asri Sejahtera with an initial capital of Rp 5 billion to enable it to directly involve in oil development activities in the regency.

"The new company will ask for between five and 10 percent. If ExxonMobil will continue to carry out its activities, it should involve the regency administration through the new company," he was quoted as saying.

Onny said that the legislative council would also ask Pertamina to involve the local government in the negotiation related to the extension of the contract of ExxonMobil on the Cepu oil field. (*)