Operator Cepu block to be determined next week
JAKARTA, Feb 25 (Xinhua): Indonesia will take over the settlement of a dispute between the state oil firm PT Pertamina and US-based oil company Exxon Mobil next week, if the two companies can not reach an agreement on the operatorship on Cepu oil and gas field in East Java province, according to Bisnis Indonesia today.
Indonesian Vice President Jusuf Kalla was quoted by the Bisnis Indonesia as saying that both ministries of mineral resources and state enterprises prepared to take steps next week, in a bid to speed up operation of the two-billion US dollar block.
"Next week two ministers will take steps to speed up the operation," he said yesterday.
Pertamina has said that it insists to be the first five years operator of the block, but Exxon rejected the demand.
The block, which is one of the Exxon's ten biggest undeveloped oil finds, is targeted to produce about 180,000 barrels of oil per day and can increase 20 per cent of the country's current production of 1.05 million barrel per day.
Exxon Mobil and Pertamina have decided to establish a joint committee to decide the operatorship of the block, according to Mines and Energy Minister Purnomo Yusgiantoro