Economy & Business

Exxon Contract To Be Extended
Friday, 20 May, 2005 | 01:19 WIB

TEMPO Interactive, Jakarta: The contract of Cepu oil and gas field contractor in Central Java, ExxonMobil Oil Indonesia, will likely be extended. In the negotiation of the contract extension, Indonesian government has indicated this extension.

State Minister for State-Owned Enterprises (SOEs) Sugiharto said that if the requirements proposed by Indonesian government in the negotiation process were agreed, the request to extend the ExxonMobil contract would be granted. The option demanded by the government is the best for PT Pertamina as the one owning the work region and state. “Now, the negotiation is in the final stage,” said Sugiharto to reporters.

According to Sugiharto, the negotiation process with Exxon is entitled to Pertamina. However, the implementation shall be based on the government consideration. He took an example of the negotiation to determine the profit-sharing pattern, that is yet to reach any agreement. (Tito Sianipar/Retno Sulistyowati – Tempo News Room)