Eric Watkins
Senior Correspondent
LOS ANGELES, Sept. 20 -- Indonesia's state oil and gas company Pertamina and ExxonMobil Corp. signed a contract establishing joint ownership in Cepu oil field of east-central Java. The contract clarified each company's stake in the Cepu Block (OGJ, Sept. 12, 2005, Newsletter).
Under the agreement, Peramina and ExxonMobil subsidiaries each hold a 45% interest, with the regional government holding 10% interest.
ExxonMobil Southeast Asia-Pacific Vice-Pres. Stephen Greenlee said the agreement outlines a 30-year production pact to develop the block, which contains 600 million bbl of reserves. A joint operating agreement must be finalized before work can start.
The Cepu Block is expected to boost Indonesia's crude oil production by 150,000-200,000 b/d. ExxonMobil faced a large dilution of its interest 2 years ago in the block, where the company made two significant oil discoveries in 2001 (OGJ Online, Oct. 4, 2002).
Contact Eric Watkins at [email protected].