ExxonMobil cites June accord in Cepu flap

Dec. 12, 2005
ExxonMobil Oil Indonesia Inc. will fight state-owned PT Pertamina for operatorship of the Cepu Block, according to Pres.-Director Peter J. Coleman, who cited a memorandum of understanding signed in June.

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec 12 -- ExxonMobil Oil Indonesia Inc. will fight state-owned PT Pertamina for operatorship of the Cepu Block, according to Pres.-Director Peter J. Coleman, who cited a memorandum of understanding signed in June.

"ExxonMobil will continue to hold out that position (as sole operator)," Coleman said. "Let's go back to that [MOU]; that's the basis, and we are ready to move forward," he said, referring to the document that made ExxonMobil operator for the 30-year duration of the contract.

In Jakarta, Coleman told reporters that ExxonMobil has offered Pertamina key management positions associated with the Cepu Block and said that the offer addressed Pertamina's aim for a larger role in the project (OGJ Online, Dec. 8, 2005).

Contact Eric Watkins at [email protected].