Exxon told to explore before extend contract<\/p>\n
Bloomberg, Jakarta<\/p>\n
Exxon Mobil Corp. should start exploring for oil in the Cepu
\nfield in Central Java if it wants its contract extended for 20
\nyears, said Mustiko Saleh, a vice president with Indonesian state
\noil and gas company Pertamina.<\/p>\n
\"If Exxon wants its contract extended, it should fulfill its
\nexisting contract with us,\" Mustiko told reporters over the
\nweekend at an energy conference.<\/p>\n
No exploration has begun in the Cepu field, which Exxon
\nestimates may produce as much as 170,000 barrels of oil a day.
\nExxon earlier said it did not want to invest more money in the
\nfield until the contract was extended.<\/p>\n
The government, anxious to develop the nation's oil reserves,
\nlast month asked Pertamina to restart negotiations with the U.S.
\noil company after talks broke down in a dispute dating back three
\nyears.<\/p>\n
Pertamina earlier wanted US$400 million from Exxon to extend
\nthe contract and for Exxon to give up half of its 35 percent
\nshare of oil produced from the field. Exxon offered Pertamina $85
\nmillion in cash with other benefits.<\/p>\n
Pertamina said in December it was willing to resume talks
\nafter turning down Exxon's request in August to extend its
\ncontract at the Cepu field through 2030. The current contract
\nexpires in 2010.<\/p>\n
The field would add about 18 percent to Indonesia's current
\noil output, helping to stem a production decline that averaged
\nmore than 5 percent annually in the past five years.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exxon-told-to-explore-before-extend-contract-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}