Pertamina, ExxonMobil sign Cepu JOA

Indonesian state-owned oil and gas company Pertamina signed on Wednesday the Joint Operation Agreement (JOA) with two subsidiaries of American energy giant ExxonMobil to jointly develop the Cepu block.

The JOA was signed by Peter Coleman, the president director of Mobil Cepu Ltd and Ampolex Cepu Pte. Ltd, Hestu Bagio, the president of Pertamina EP Cepu in a ceremony witnessed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro and State Minister of State Enterprises Sugiharto.

Under the deal, the subsidiaries of Pertamina and ExxonMobil agree to jointly operate the block with ExxonMobil?s official as the general manager and Pertamina?s official as deputy general manager over the contract period of 30 years.

Exploration results have indicated that the block has oil reserves of 600 million barrels and natural gas reserves of 1.7 trillion cubic feet.

The field could produce up to 170,000 barrels of oil per day. (Alex)