Pertamina expects to soon conclude talks with Mobil Cepu

State oil and gas firm Pertamina expects to conclude soon its negotiations with Mobil Cepu Limited (MCL) over the latter?s contract for Cepu oil block in Central Java, Pertamina upstream director Iin Arifin Takhyan said on Tuesday.

?We hope to conclude our negotiations in the near future,? Iin told Petromindo.com.

Their negotiations focus on MCL?s request to extend the Cepu block contract after it expires in 2010.

MCL is a subsidiary of ExxonMobil which operates in Cepu in Central Java.

Pertamina demands that it be given 35 percent interest in the Cepu project if MCL?s contract is extended in 2010. Currently, Pertamina interest in the block is only 10 percent.

MCL expects 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?s oil reserve is estimated at 250 million barrels, and is also believed to contain gas reserve.

Meanwhile, oil and gas director general Rachmat Sudibyo said on Tuesday the government will make decision on the Cepu oil block contract only after getting reports from Pertamina and Mobil Cepu about the results of their negotiations.

?After concluding their negotiations and reaching an agreement, they will come to report to the government. Then the government can make decision,? Rachmat told Petromindo.Com.

In another development, House members recently supported Pertamina?s bid for having higher interest in the Cepu oil block.

One of the legislators said in a hearing with Pertamina leaders it is even better for the company to operate the oil block by itself. With large oil reserve, the oil project could give larger benefits to the people, he said. (Godang)