Govt refrains from intervening in Cepu Block talks

The government will refrain from meddling in negotiations between state oil and gas firm Pertamina and world giant ExxonMobil over Cepu Block in Central Java, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Tuesday.

?It would be unethical for the government to intervene in their negotiations,? Purnomo said in a parliamentary hearing.

Purnomo argued the government had given its board of commissioners for Pertamina (DKPP) the task of negotiating with ExxonMobil over ExxonMobil?s request to extend by 20 years its Cepu contract which expires in 2010.

ExxonMobil, through its unit Mobil Cepu Ltd, controls 100 percent interest in the Block.

Pertamina had demanded ExxonMobil to give it 50 percent participating interest in the block which the latter said as holding proven oil reserve of 250 million barrels.

Some well-placed Indonesian leaders have urged the government not to extend ExxonMobil?s contract, saying that allowing Indonesian parties to operate and manage it will be much more beneficial to the nation. The leaders included Minister/Chairman of National Planning Agency Kwik Kian Gie, and Deputy House Speaker AM Fatwa. (alex)