Pertamina requests bigger share from Cepu

State oil and gas firm PT Pertamina, a partner of ExxonMobil in the Cepu block, has requested a bigger share of production split in the block. At present, the share for the contractors is 15 percent, with the remaining 85 percent going to the government.

But under the new request, specific only to Pertamina,and without being applied to other contractors, the share is proposed to be increased to 40 percent (with the government taking the balance).

Deputy Minister of Energy and Mineral Resources Rudi Rubiandini said the request was the initiative of Pertamina and had been proposed in a coordination meeting at the Finance Ministry.

"The request has been discussed. But no decisions as yet. Personally, I support that initiative," he said in Jakarta, last week, adding that even if the proposal is approved, production split for others, such as ExxonMobil would remain at 15 percent.

"Pertamina wants the 40 percent share because it is state owned company," said Rudi as reported by Investor Daily.

The block, located at the borders of Central Java and East Java, is operated by Mobil Cepu Ltd, a unit of ExxonMobil Oil Indonesia, with a 45 percent participating interest. Pertamina, through PT Pertamina EP Cepu, holds another 45 percent. The remaining 10 percent participating interest is shared by a consortium of regionally owned companies; PT Sarana Patra Hulu Cepu (Central Java), PT Asri Dharma Sejahtera (Bojonegoro), PT Blora Patragas Hulu (Blora), and PT Petrogras Jatim Utama Cendana (East Java).

It remains unclear whether ExxonMobil is aware of Pertamina's request.(*)