Exxon says it must be Cepu block’s operator

ExxonMobil Oil Indonesia (EMOI), the subsidiary of U.S. oil giant ExxonMobil, insisted on Tuesday that it had the right to become the operator of Cepu oil and gas block because it was in line with the memorandum of understanding (MoU) signed by EMOI and the government’s negotiation team.

“Everybody must respect the MoU contents,” EMOI’s vice president for public affairs Maman Budiman said in Jakarta on Tuesday.

The MoU, according to Maman, has clearly mentioned that EMOI is the operator of the Cepu block. EMOI will have 50 percent participation on par with the government with a condition that the local administration must be given 10 percent stake.

“Later, it will become 45:45:10. The 10 percent will be for the region,” Maman said.

He also said the company will start the project in terms of both planning and financing immediately after the signing of the contract.

“We will directly develop Banyu Urip with an investment of between US$1.1 billion -$1.5 billion,” Maman said.

Meanwhile, state-owned oil and gas company PT Pertamina’s deputy president Mustiko Saleh said his company will go ahead with the mandate given by its shareholders meeting held on June 30 despite the criticism from many that it will be not in line with the MoU.

“Pertamina must become the operator of the block so that the government’s share from it will be increased. The region’s vote is also must be in the hands of Pertamina,” Mustiko said.(godang)