Surya Paloh eyes Cepu oil block

Media mogul Surya Paloh, the owner of the Media Group, has expressed keen interest to take part in the development of the Cepu oil block in Bojonegoro regency, East Java.

Koran Tempo reported on Friday that Paloh had established a new company called PT Surya Energy Raya Paloh to take part in the joint venture that would operate the oil block.

Sugeng Saparwoto, the president of Surya Energy, confirmed that Surya Paloh had signed a cooperation agreement with the Bojonegoro authority, which would own a 10 percent interest in the Cepu oil block.

"Surya Energy and PT Asri Dharma Sejahtera, a new company established by the Bojonegoro government, will establish a joint venture to realize the plan," he added.

Under the latest agreement, ExxonMobil will have 45 percent interest in the oil bock, Pertamina another 45 percent and Bojonegoro government the remaining 10 percent. It will cost at least US$3 billion or about Rp 24 trillion to develop the oil block, which should be shared by the three parties according to the percentage of their ownership.

Sugeng said Surya Energy had agreed to provide Rp 2.4 trillion to be needed by the Bojonegoro to fulfill its equity participation in the Cepu oil block. (*)