Pertamina yet to inform Purnomo on decision over Cepu Block
Thursday, October 3 2002 - 05:59 AM WIB
?I have not received any letter about it from Pertamina. I learnt about its decision only from media reports,? Purnomo told Petromindo.Com.
Purnomo chairs Pertamina?s board of commissioners which has a final say on the firm?s strategic decisions.
Pertamina upstream deputy director Eteng Salam said on Wednesday that it would not extend ExxonMobil?s TAC for the Cepu oil block which will expire in 2010. ?We have decided not to extend ExxonMobil?s TAC when it expires,? Eteng told a news conference.
Eteng said on Wednesday Pertamina would take over the block and give ExxonMobil priority to take part in a new joint venture company with Pertamina. The joint venture firm would develop the Cepu block.
ExxonMobil, through its wholly owned subsidiary Mobil Cepu Ltd, presently holds 100 percent interest in the Cepu block. It acquired the block from a firm owned by former president Soeharto?s youngest son Hutomo Mandala Putra. Last year, ExxonMobil announced that it had discovered recoverable oil reserves of at least 250 million barrels in the Cepu block, compared with some 450 million barrels disclosed by state oil and gas center LEMIGAS.
ExxonMobil had kept urging the government to extend its Cepu TAC by 20 years despite mounting pressures from some government officials and politicians that Pertamina take over the oil block.
The field had originally been planned to start flowing oil of around 150,000 barrels per day in 2003. But protracted negotiations between Pertamina and ExxonMobil had put the plan to a halt. (godang)