Conditions set for extension of ExxonMobil ?s contract in Cepu oil block
Thursday, February 21 2002 - 01:22 AM WIB
The state-owned oil and gas company Pertamina has proposed two conditions to ExxonMobil Oil Indonesia for an extension of its technical assistant contract (TAC) in the Cepu oil block.
Pertamina president Baihaki Hakim was quoted by Tempo daily as saying on Wednesday that the company demanded a greater revenue portion from the oil block plus a cash bonus from ExxonMobil if the TAC was to be extended before the expiry period in 2010.
He said that the two conditions would be a basis for negotiation with ExxonMobil.
The Cepu oil block is operated by Exxon Cepu Ltd., a unit of ExxonMobil Oil Indonesia. The block is expected to start producing around 50,000 barrel of oil per day in 2003, and latter to increase to 200,000 bpd. The oil potential in the block is estimated at 250 million barrel. The block is also believed to contain gas reserves.(*)