Pertamina against Exxon?s extraction method in Cepu

State oil and gas company Pertamina said on Tuesday it was against ExxonMobil?s plan of extracting the 250 million barrels oil reserves in Cepu TAC, Central Java, within five years, saying that any companies as large as ExxonMobil should maintain standard technical practices.

?We need to maintain good engineering practices. What ExxoMobile has proposed is not acceptable to Pertamina technically,? Pertamina president director Baihaki told reporters on the sidelines of a seminar on the popularization of oil and gas law on Tuesday.

But he did not explain the engineering standard.

Pertamina has any right to reject ExxonMobil?s proposal even if that company would continue persuading Pertamina to fulfill its request.

?Don?t worry. We have any right to reject their proposal. If their operation causes losses on the part of the state, then what for?? Baihaki noted.

The condition of the Cepu field allows ExxonMobil to extract 100,000 bpd at the most, according to Baihaki, and this compares to the 150,000 bpd planned by the American company.

Pertamina still insists on a 35 percent stake in ExxonMobil?s Cepu oil field, while the latter only wants to give it a 10-percent stake. (leo)