Pertamina says Sumitomo not involved in Cepu negotiations

State oil and gas firm Pertamina on Wednesday dismissed reports that Japan?s Sumitomo Corp had been involved in its negotiations with ExxonMobil Corporation on the fate of Pertamina-owned Cepu giant oil block in Central/East Java.

?Pertamina is in negotiations only with Exxon Cepu,? Pertamina president director Ariffi Nawawi told a hearing with Commission VIII of the House of Representatives in charge of energy and mineral resources.

Sumitomo has reportedly planned to buy stakes in two oil fields in Australia and one in Indonesia for as much as 30 billion yen. According to Bloomberg, the two concessions up for sale in Australia are connected to ExxonMobil.

Ariffi admitted however that his company was continuing talks with Sumitomo about a planned natural gas liquefaction project in South Sumatra.

Meanwhile, Pertamina said earlier it would possibly sign with ExxonMobil next January a joint venture agreement on Cepu field.

The two companies had in principle agreed to operate the block on a 50:50 basis.

Pertamina owns the Cepu block while Exxon Cepu operates it under a technical assistance contract (TAC), which will expire in 2010.

Ariffi said Wednesday Pertamina would operate the block by itself if its negotiations with ExxonMobile remain deadlocked until 2010. (godang)