Purnomo asks Pertamina to audit ExxonMobil
Wednesday, September 10 2003 - 03:08 AM WIB
Minister of Energy and Mineral Resources Purnomo Yusgiantoro has asked state owned oil and gas company Pertamina to audit ExxonMobil?s operation in the Cepu oil bloc following alleged cost mark-up practices, Kompas reported on Wednesday.
Purnomo said that ExxonMobil?s Cepu oil block in Central Java is part of Pertamina?s working area so that the state owned oil and gas company should be able to settle its own problem.
?Cepu is not part of the oil concession areas overseen by BP Migas,? Purnomo was quoted as saying.
According to the American oil company, its total operating cost in the Cepu oil block reached about US$459 million, while based on valuation by government audit agency BPKP, the total spending were only US$142 million.
According to existing production sharing contracts, spendings by contractors for operating activities would be recovered through part of the oil or gas production. (*)