Pertamina seeks bank loans for development of Cepu oil block

State oil and gas company Pertamina will seek bank loans to help finance the development of the Cepu oil bock which will be operated by the company in cooperation with ExxonMobil Indonesia, Pertamina's president director Widya Purnama has said.

Spaking to reporters in Jakarta at the weekend, Widya said that Pertamina would need at least US$500 million to finance the development of the Cepu oil block. But he did not disclose the amount of loans to be raised from banks.

"As soon as the joint operation agreement signed with Exxon, we will hold a 'beauty contest' for banks interested in providing the loans," he added. He did not elaborate the names of the banks to be invited in the 'beauty contest'.

Widya also said that Pertamina was preparing its overseas expansion plan in several countries including Libya, Iraq, Iran, Malaysia and Vietnam. "Pertamina's Vice President Mukito is now visiting Libya, Iraq and Iran to study the plan to develop oil blocks in these countries," he added. (godang)