Bojonegoro lures Chinese investors to jointly develop Cepu block

A delegation from the Bojonegoro regency, one of regencies in West Java province, departed for China on Tuesday for a six-day visit to conduct a comparative study on oil exploration and production activities in the country, Investor Daily reported on Wednesday.

Bojonegoro regent, HM Santoso, who headed the delegation, said that besides conducting a comparative study, the delegation would also offer the opportunity to Chinese companies to cooperate in the development of the Cepu oil block.

Under the existing agreement, Pertamina and ExxonMobil will have participating interest of 45 percent in the Cepu oil block, each. The other 10 percent will be allocated to Bojonegoro regency, which oversees the territory where the oil block is located.The two oil giants are still negotiating which of them will act as the operator of the oil block.

According to Masruchin Irfan, another senior official of the Bojonegoro regency joining the trip, at least eight international oil companies have offered the Bojonegoro government to cooperate in developing the regency?s oil reserves including those found in the Cepu oil block. He did not elaborate.(*)