Pertamina, Exxon to meet next week on Cepu block

State-owned oil and gas firm PT Pertamina will meet with th U.S. energy giant ExxonMobil Corp next Monday to start formulating the Joint Operating Agreement(JOA) to develop the Cepu block, Pertamina's president director Widya Purnama said on Friday.

?We hope the agreement (JOA) on Cepu block could be signed this month because we still need to submit work program and budget on the block soon as possible,? Widya told reporters.

Last month, the government awarded a production sharing contract to both Pertamina and ExxonMobil to develop the Cepu block, ending four years of dispute between both firms over the right to develop the block. However, both firms have yet to sign a JOA between them.

Widya said Pertamina expected that field activities on the block could be commenced early next year.

He also said several state-owned banks such as BNI, BRI, and Mandiri had shown interest to finance the development of the block.

Earlier Widya said Pertamina would need at least US$500 million to develop the block. (godang/dino)