Bojonegoro should pay if it wants stake in Cepu oil field

Pertamina has welcome the intention of the Bojonegoro regency administration in East Java to own interest in the Cepu oil field as long as the regency pays for the stake under a normal business deal, Bisnis Indonesia reported on Wednesday.

“We want the regency to play an active role, meaning that it should buy the ownership in the oil field,” Pertamina’s president Ariffi Nawawi told reporters on Tuesday following the post-Idulfitri gathering at the Ministry of Energy and Mineral Resources

Ariffi said that nowadays local government could no longer obtain ownership in certain oil fields for free.

Onny Supriyadi, the head of Commission C of the Bojonegoro legislative council, however, said that the local government would continue to demand Pertamina to give a stake in the Cepu oil field free of charge.

“We don’t need to pay for the stake, because we have already provided all the licenses needed for the exploration and production of the oil field. If it happens that could anger the local people like those taking place in Arun, Aceh,” he said.

The Cepu oil field is operated by ExxonMobil Indonesia under a joint operation contract with Pertamina. Ariffi said that Exxon and Pertamina had agreed to equally own the oil field after a number of negotiations. (*)