ExxonMobil to Renegotiate Natuna Profit-Sharing
Monday, 06 November, 2006 | 14:37 WIB

TEMPO Interactive, Jakarta:ExxonMobil Oil Indonesia is willing to renegotiate about profit-sharing at the Natuna D-Alpha Block.

Maman Budiman, ExxonMobil Oil Indonesia spokesperson, said that negotiations would discuss all terms and conditions contained in the contract.

“Including the proceeds split. We're willing to talk about all matters written in the contract as long as it is beneficial for both sides, a win-win solution,” Maman told Tempo yesterday (5/11).

He stressed that the proceeds split was only a small issue of the contract.

Based on the old contract signed in 1995, the yield for ExxonMobil is 100 percent and the government zero.

However, the government received part of the taxes deposited by ExxonMobil.

Maman explained that ExxonMobil was willing to negotiate again because world oil prices are now higher compared to when the contract was made.

“Gas prices are now around US$9,” he said.

He went on to say Natuna gas prices are now being discussed by ExxonMobil, Petronas (Malaysia) and PTT (Thailand).

KE INDRIETTA