Mobil Cepu Ltd slows down exploration
Monday, June 17 2002 - 04:45 AM WIB
Mobil Cepu Ltd (MCL), an ExxonMobil subisdiary in Central Java, is slowing down its exploration activities in Cepu pending the completion of its negotiations with state oil and gas firm Pertamina over its contrct for the Cepu oil block, an oil and gas industry source told Petromindo.com on Monday.
?Mobil Cepu has slowed down its exploration activities while awaiting the results of negotiations with Pertamina about the Cepu block," the source said.
Negotiations between MCL and Pertamina focus on whether the former's contract can be extended after it expires in 2010.
Pertamina insists that the contract can be extended if MCL agrees to increase the former?s interest in the oil block to 35 percent, from the current 10 percent.
MCL is expected to start producing around 50,000 barrels per day (bpd) of oil in 2003, and later increase the volume to 200,000 bpd.
The Cepu block has oil reserve of an estimated 250 million barrels, and is also believed to contain gas reserve. (Godang)