Pertamina wants Cepu block operatorship
Monday, August 8 2005 - 11:51 PM WIB
Pertamina also wants an increased share of revenue from the field, rejecting an agreement on June 22 by the government to give Exxon and Pertamina as much as 13.5 percent each, Widya Purnama, president director of Pertamina, told reporters in Jakarta today.
"We're asking the government to give the operator-ship to Pertamina," Widya said. "These are our proposals. We have submitted these to the government this week, ahead of the Sept.23 dateline set by the government. It's up to the government to decide as they're our shareholders."
Cepu, located in central Java, is estimated to contain 600 million barrels of oil and significant volume of gas.
Indonesia's central government agreed to give Exxon, PT Pertamina and the local government a so-called production sharing contract with as much as 30 percent of the field's revenue if oil prices drop below $35 a barrel and as little as 15 percent if prices rise above $45, Rizal Mallarangeng, a spokesman for the negotiating parties, told reporters in Jakarta on June 22.
The balance of the revenue would go the central government.
Exxon and state-owned Pertamina each would get 45 percent of the share from the production sharing contract and the local government 10 percent. "We want the local government's 10 percent's voting right be transfered to Pertamina, which will make Pertamina operator with 55 percent interest," he said. He said local giovernment would still retain its 10 percent interest.
Pertamina rejected the offer as it wanted 18 percent of the field's revenue, Widya said. The percentage is calculated by taking 45 percent of the 40 percent share of total revenue Pertamina had been entitled to under an earlier agreement with the government, he said.
"We're also asking the government to keep our privileges as a state company of 40 percent production share with the government," Widya said.(*)