Pertamina and Exxon urged to begin exploration of Cepu oil block

The Bojonegoro regency's administration and the local residents have demanded state owned oil and gas company Pertamina and American oil giant ExxonMobil to soon begin exploration activities at the Cepu oil field.

At least 700 residents from 14 villages located near the oil block rallied in Gayam village in the Ngasem district on Monday to demand the two oil companies to soon commence the exploration activities in the oil block.

"Some members of the regency's legislative council and I would meet President Susilo Bambang Yudhoyono to deliver the local people's demand," Bojonegoro regent, Santoso, told Petromindo.com.

Santoso said that the local government and its people hoped the exploration activities could be soon commenced so that the opening of the Cepu oil blocks would be able to help improve the local economy.

ExxonMobil, the current operator of the Cepu oil block, has been allowed to operate the oil block for another 20 years in cooperation with Pertamina. Under the latest deal, Exxon and Pertamina will have 45 percent interest each in the oil block, while the other 10 percent will be given to the local government.

However, Pertamina opposed the deal, saying that it deserves to be given larger ownership in the oil block.

At a hearing with members of the House of Representatives (DPR) on Tuesday, Pertamina's president Widya Purnama said that Pertamina should own at least 55 percent participating interest in the oil block.

"The 10 percent participating interest to be given to the local government should constitute a part of Pertamina's ownership so that Pertamina will have a controlling stake in the oil block," he added.

According to him, Pertamina has established a special team to prepare the joint operation body with ExxonMobil to operate the oil block. (Dino)