Exxon, Pertamina sign Cepu share agreement with local govt firms
Friday, February 22 2008 - 02:43 AM WIB
The agreement was signed on Friday in Semarang, Central Java.
The agreement sets forth the terms and conditions for the BUMDs -- PT Sarana Patra Hulu Cepu (Central Java), PT Asri Dharma Sejahtera (Bojonegoro), PT Blora Patragas Hulu (Blora) and PT Petro Gas Jatim Utama Cendana (East Java) -- to obtain a total of ten percent participating interest in the block.
In accordance with the provisions of Indonesia oil and gas laws and regulations, the assignment is subject to agreed commercial terms. Under this agreement MCL and Ampolex will have a combined 45 percent interest and PT Pertamina EP Cepu will have the remaining 45 percent interest.
"MCL is pleased to have reached an agreement with the local government companies, and we are also very appreciative of the support received from the regions. We believe this cooperation will help us move forward in the development of the Cepu block in an efficient and timely manner," President and General Manager of MCL, Michael K. Nelson said.
In March 2001, ExxonMobil and Pertamina announced the Banyu Urip discovery in the Cepu Block. The Banyu Urip field is estimated to contain more than 250 million barrels of oil. At peak production, the field is expected to produce up to 165,000 barrels of oil per day. (godang)