Widya threatens to resign over Cepu issue

State-owned oil and gas company PT Pertamina?s president director Widya Purnama has threatened that he will quit his job if Pertamina would not become the operator of Cepu oil and gas block in the first five years, the Investor Daily Indonesia reported in its Thursday edition.

Widya said this during a hearing with the House of Representatives? Commission VII on Wednesday night in Jakarta. He admitted that he didn?t understand why the appointment of Cepu block operator was taking a long time until now.

?However it may be, Pertamina must become the operator of Cepu block in many ways, like joint venture. What is important is , Pertamina must become the operator,? he asserted.

According to Widya, the intention of Pertamina is related to the cost recovery from the development of the block. If Pertamina becomes the operator, whatever the money the government so far, it will be returned to the state coffers. Technically, Pertamina sees it is easy to operate the Cepu block, which has 1,500 meters to until 2,000 meters depth.

In Libya, Pertamina has become the operator. Why can?t we do this here?? he asked.

Separately, the Minister of Energy and Mineral Resources Purnomo Yusgiantoro said he could not do much. The government can only advise both Exxonmobil and Pertamina to decide soon on the issue of operator of the block. The government?s job was over when the contract was signed on Sept. 17, 2005.

?Now it is an household problem of the production sharing contractors (Pertamina and ExxonMobil) in case of operatorship. So, we can?t intervene because it?s not under the authority of Minister of Energy and Mineral Resources. But we have asked them (to settle the matter." (*)