Pertamina, ExxonMobil sign agreement to develop Cepu block

Indonesian oil and gas regulator BP Migas signed on Saturday an agreement with state-owned oil and gas company PT Pertamina and U.S. energy giant ExxonMobil Corp. to give the two firms license to develop the Cepu oil block, the country?s biggest untapped oil field.

The production-sharing agreement comes a day after Pertamina refused to accept ExxonMobil as the operator of the oil block, which is located on the border of East Java and Central Java.

Pertamina, however, has yet to discuss with ExxonMobil about the operatorship of the block, Pertamina vice president Mustiko Saleh said. ?We want to see a concept of joint operatorship being applied,? he said. (Godang)