ExxonMobil accepts Cepu revenue sharing scheme.(Indonesian government signs an agreement with Exxon Mobil Corp.)(Brief Article)

Indonesian Commercial Newsletter, June, 2005

U.S. energy giant ExxonMobil has accepted revenue sharing scheme proposed by the government ending lengthy negotiations on the development of the oil and gas rich Cepu block in Central Java Based on the scheme ExxonMobil will have 6.5%-6.7% of the revenue if the oil price in the world market is more than 45% and 13.5% if the price is below US$ 35 per barrel.

Presidential spokesman Rizal Mallarangreng said two month negotiations finally came to a conclusion with fundamental agreement changing the old scheme of production split of 80:20 or 85:15 in favor of the government used for over 30 years with one based on the oil price. The agreement will also mean ExxonMobil contract in Cepu will be extend for another 30 years after the termination of the present contract in 2010.