ExxonMobil ready to put up additional investment of $2.6 billion in Cepu.(CORPORATE NEWS IN BRIEF)(Brief Article)

Indonesian Commercial Newsletter, February, 2005

ExxonMobil Oil Indonesia Inc. said it will increase investment by US$ 2.6 billion in the Cepu oil block if the state-owned oil company Pertamina agrees to extend its contract after its termination in 2010. It told legislators in a meeting with the Commission VII of the House of Representatives with the additional investment Cepu is expected to produce 170,000 barrels of oil per day in 2008.

Chairman of the Commission VII Agusman Effendi said the U.S. oil company also agreed to pay a compensation to Pertamina as the owner of the block. Pertamina has said it would not renew the contract as asked by Exxon Mobil Oil. The government will earn an estimated US$ 4 million a day from its share of oil output if the contract is extended not including earning by Pertamina...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.