Bojonegoro residents protest Surya's involvement in Cepu block

Thousands of people rallied on Monday in front of the Bojonegoro legislative council in East Java to protest the involvement of PT Surya Energi Raya (SER) in the development of the Cepu oil field in the regency, Neraca reported on Monday.

The protesters urged the local councilors to drop the deal that had been signed by the local government to cooperate with SER, which is controlled by Surya Paloh, the publisher of Media Indonesia daily and the owner of Metro TV.

The street demonstration against the involvement of Surya Paloh's company in the Cepu oil block was the second since the local government signed an agreement to involve the company in acquiring a 10 percent interest in the oil block.

ExxonMobil and Pertamina have agreed to form a joint venture to operate the Cepu oil block in cooperation with the local government. The two oil giants will have a 45 percent interest, respectively, in the joint venture, while the Bojonegoro regency will own the remaining 10 percent.

It will cost at least US$3 billion or about Rp 27 trillion to develop the oil block, which should be shared by the three parties according to the percentage of their ownership.

Surya Energy has agreed to provide Rp 2.7 trillion to be needed by the Bojonegoro regency to fulfill its equity participation in the Cepu oil block. (*)