Oil firms temporarily settle dispute
The Jakarta Post, Jakarta
Oil and gas companies Pertamina, PetroChina, and ExxonMobil Corp. have temporarily settled their dispute about the operation and revenue sharing of the Sukowati oil field, a government official said on Tuesday.
Ministry of Energy director-general of oil and gas Arifin Takhyan said under the revenue sharing scheme, ExxonMobil of the United States would get 80 percent of the revenue, while the other 20 percent would go to JOB Tuban, a combined venture headed by China's PetroChina and state oil company Pertamina.
"The production split for Sukowati is 80:20 for Exxon as agreed to by the related parties. We've appointed JOB Tuban as the operator because they're the most ready to start production," Arifin said after a meeting with the House of Representatives Commission VIII for mining and energy affairs.
The dispute revolves around production tests currently being carried out by JOB Tuban at the Sukowati oil field in East Java, which is believed to have recoverable oil resources of 25 million barrels.
About 85 percent of the resources reportedly lie in the Cepu block, owned by ExxonMobil, while the remaining 15 percent is in the adjacent Tuban block, owned by JOB Tuban.
Pertamina recently announced it had refused to extend ExxonMobil's contract on the Cepu block, which is due to expire in 2010.
JOB Tuban had reportedly pumped up an estimated 170,000 barrels from the Sukowati field as of August.
However, the latest revenue sharing scheme is only valid for the next two months and both groups need to make a new deal when it expires.
Arifin said the parties should appoint one independent consultant to appraise how revenue should be shared. The final scheme would be likely based on how much volume each party owned, he said.
Meanwhile, Minister of Energy Purnomo Yusgiantoro said the dispute should not affect production in the oil field because its reserves were essential for the country.
"What matters to me is that production must not stop because of this disagreement. This oil field can produce between 7,000 to 10,000 barrels per day and it will be big boost to our economy. We need to increase production," he said.