ExxonMobil commits to Cepu MOU

ExxonMobil commits to Cepu MOU

U.S. oil giant ExxonMobil Corp. has renewed its commitment to
comply with its memorandum of understanding (MOU) and production
sharing contract (PSC) with the Indonesian government before
deciding to exploit the untapped oil-rich Cepu block.

Joint operators should comply with the deals that depict a
clear revenue-sharing scheme and mechanism, said new Exxonmobil
Indonesia president Peter J. Coleman during a visit to Bojonegoro
on Tuesday.

"Exxonmobil will remain committed to developing the Cepu
block. For sure, we want the exploration and exploitation of the
field to be done as soon as possible," Coleman was quoted by
Antara as saying.

Coleman and several ExxonMobil executives met Bojonegoro
Regent H.M. Santoso to discuss the company's plan to manage the
block, which contains estimated reserves of 500 million barrels
of crude oil.

At present, ExxonMobil and state oil and gas firm PT Pertamina
are wrangling in a dispute to seal a joint-operation agreement
for the block, which is expected to start pumping out oil in
2008.

The agreement is needed to determine which of the two
companies is authorized to operate the block.

Antara reported that during the meeting, the two parties also
discussed a plan to acquire between 800 and 1,000 hectares of
land located in the Ngasem and Kalitidu districts for managing
the block, which is located between Central Java and East Java.

Neither officials from the regency nor ExxonMobil have
confirmed the report.

Santoso only said the visit was just a courtesy call from
Coleman, who was new in his post and wanted to personally get
acquainted with him. -- JP