Gov?t study shows ExxonMobil Cepu oil reserves at 500 million barrels

Government said on Tuesday Exxon Mobil Corp's Cepu block in Central Java has oil reserves of around 500 million barrels, double the original government estimate.

Exxon Mobil and state oil company Pertamina have been in revenue-sharing talks over the block since last year, when the government estimated the block held reserves of 250 million barrels.

"We have data that shows oil reserves at the Cepu oil block are about 500 million barrels," said Kardaya Warnika, acting director general of oil and gas at the mines and energy ministry.

"Pertamina and Exxon Mobil are still negotiating on what share of revenue Pertamina will get from the block," he told reporters.

A Pertamina official has said Exxon Mobil was currently operating the Cepu block under a technical assistance contract but the terms of this were unclear.

Exxon Mobil currently operates all of the Cepu block in a contract that will expire in 2010 although Kardaya said the government was still studying Exxon's request the contract be extended. (*)