Pertamina demands key positions in the operation of Cepu block

Pertamina has insisted to hold a controlling position in the joint operation scheme offered by ExxonMobil in developing the untapped oil and gas resources in the Cepu oil block.

"For Pertamina, it will not be a problem if ExxonMobil heads the operating committee as long as we are given the position of general manager in the joint operation scheme," Pertamina's president director Widya Purnama told members of the House of Representatives (DPR) in a hearing on Monday.

In addition to the position in general manager, Pertamina should be also allowed to hold the positions of financial manager and field manager, he said. Widya insisted that the government would get more advantages if Pertamina is given the controlling position because with such position the state owned oil and gas company would be able to cut exploration costs as low as possible.

Earlier State Minister for Supervision of State Enterprises Sugiharto said that he would propose for the appointment of Pertamina's senior official as the head of the operating committee.

In its latest offer, ExxonMobil had proposed for the establishment of a joint operation body to operate the disputed oil block. In its offer, ExxonMobil demands the oil block to be operated by its subsidiary Mobil Cepu Ltd in which its board of directors will comprise of Pertamina and Exxon representatives. The company will be overseen by the joint operating committee which will also comprise senior officials of the two companies.(Godang)