ExxonMobil Asked to Propose New Terms and Conditions
Tuesday, 23 January, 2007 | 17:37 WIB

TEMPO Interactive, Jakarta: The Upstream Oil and Gas Executing Body (BP Migas) has asked that ExxonMobil Oil Indonesia Inc. propose new terms and conditions of the Natuna Block D-Alpha management contract. Head of BP Migas Kardaya Warnika said that the new terms and conditions include profit share and participating interest. “We are ready to talk with ExxonMobil,” he said yesterday (01/22).

The offer that the contractor proposed, he said, must meet a contract provision of profit share that was signed in 1980. In addition, the contract must benefit the government.

Kardaya explained that BP Migas has met with ExxonMobil. However, he said, Exxon Mobil is yet to deliver the concrete proposal of development. As regards the negotiations deadline, the government has not yet set it. “It’s the deadline that sets the government, not BP Migas,” he said.

A Member of the Energy Commission Alvin Lie said that contract negotiations between the Natuna Block D-Alpha with ExxonMobil has violated Law Number 22/2001 on Oil and Natural Gas. “The contract should be presented to Pertamina first,” he said.

Budi Saifulharis