Exxon, Pertamina to spend $ 76m on Cepu

ExxonMobil Corp. and Indonesia?s state oil company PT Pertamina will spend US$ 76 million this year to develop Cepu, the country?s largest untapped oil reserve, The Jakarta Post reported on Tuesday.

The two companies will buy land, build a pipeline and conduct seismic surveys in the area, Maman Budiman, a spokesman for Exxon?s Indonesia unit said Monday.

The proposals have to be approved by the state oil and gas regulator, BPMigas. The regulator last month requested Exxon and Pertamina to start production by 2008, one year earlier than planned, to help the country reverse a 10-year slide in its output. Cepu may eventually produce as much as 180,000 barrels of oil a day, about a fifth of Indonesia?s current production.

The companies may not be able to meet the target set by BPMigas because of delays finding oil rigs and other equipment, Ari Soemarno, president director of Pertamina, on June 12,(*)