Economy & Business

Pertamina State Oil Company Will Not Sign Cepu Block Contract
Friday, 22 July, 2005 | 11:13 WIB

TEMPO Interactive, Jakarta:Umar Said, a Commissioner of state oil & gas company member Pertamina, has said that Pertamina directors will not sign the contract agreement with ExxonMobil oil company.

The reason is because the oil and gas Law stipulates a Pertamina subsidiary is the one that should sign the contract.

“The regulation is like that,” said Said in Jakarta, adding that following the agreement with ExxonMobil, the Pertamina subsidiary Pertamina-Cepu must establish the contract.

Pertamina is currently preparing this subsidiary company.

“Within three months of the agreement in principle with ExxonMobile, everything must be ready including the subsidiary company of Pertamina,” said Said.

In principle, the Pertamina-Exxon negotiation team has reached agreement.

The agreement in principle was signed at the end of last week by Martiono Hadianto, head of the Pertamina negotiation team, and the Exxon team chairman, Stephen Greenlee, who is Vice President for South East Asia Pacific of the ExxonMobil Exploration Company.

The concept of the agreement is an adjusted split, a combination of profit sharing and participating interest with the international oil price as a reference. (Muhamad Fasabeni-Tempo News Room)