UPDATE: Pertamina CEO: Exxon Has Had 'Enough Time' On Cepu
September 30 2009 - 8:55PM
Dow Jones News
The head of Indonesia's state energy company said Wednesday that
the company has given Exxon Mobil Corp. (XOM) "enough time" to
begin boosting production in the giant Cepu oil and gas block,
suggesting a risk that it may push for changes in a contract to
operate the area.
Pertamina Chief Executive Karen Agustiawan said that "this is
the time that the production needs to be onstream" and that whether
the Indonesian company becomes the operator or not, "we have to
have a say." She said that "we have given Exxon enough time." Her
comments came in response to a question during an interview with
Dow Jones about whether Pertamina would demand to change the
contract for operating the block.
Cepu, operated by Exxon's subsidiary Mobil Cepu Ltd., started in
December 2008 but shut in April due to pipeline problems. Mobil
Cepu has previously said it aims to ramp up production to 15,000
barrels a day by October. Cepu is expected to eventually produce
around 160,000 barrels a day.
An Exxon spokeswoman declined to comment, citing company policy.
She said in an e-mail that Mobil Cepu Ltd. and its partners "remain
focused on safely and efficiently developing Cepu oil and gas
resources, and in doing so supporting Indonesia's priorities in
energy production."
As for a decision on which block Pertamina will offer Total SA
(TOT) in exchange for a 15% stake in its offshore Mahakam gas block
the Indonesian company hopes to buy, Agustiawan said that it won't
be made "before we sit down and see the upside potential of what is
left in Mahakam." She expects that evaluation to be complete by the
end of October.
-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654;
Siobhan.Hughes@dowjones.com
(I-Made Sentana contributed to this article.)