Pertamina insists on 35% stake in ExxonMobil?s Cepu oil field

The state-owned oil and gas company Pertamina still insist on a 35 percent stake in ExxonMobil Oil?s Cepu oil field. But Pertamina negotiation has been tough as ExxonMobil only wanted to give a 10 percent stake.

?Until now, the negotiation has not been completed because we want huge (stake), while they (ExxonMobil) only want to give little,? Pertamina downstream director Iin Arifin Takhyan was quoted by the evening Suara Pembaruan daily as saying on Monday.

Pertamina president Baihaki Hakim said earlier during a hearing session with the parliament that the state company wanted to take a bigger stake in order to be able to have control on the management of the Technical Assistance Contract (TAC) oil field operation.

?There has been indication that they want to quickly drain the oil resource in the location. That?s why we have to be careful,? Baihaki said.

He said that this indication could be seen from the working method proposed to Pertamina: using a secondary treatment system to extract oil.

?Why would they have to propose for the use of secondary treatment system while normal operation could allow the company to get oil. That?s why I have instructed the directors (of Pertamina) to reject the proposal,? he said. (*)