ExxonMobil Estimates Cepu Reserves Double Original Estimate

Estimates now show that reserves in the Cepu Block in Central Java contain reserves of approximately 500 million barrels, double the original estimate. The block is currently operated by ExxonMobil. Revenue-sharing negotiations between Pertamina and ExxonMobil have been ongoing since last year. "We have data that shows oil reserves at the Cepu oil block are about 500 million barrels," said Kardaya Warnika, acting director general of oil and gas at the Indonesia Mines and Energy Ministry.

A Pertamina official has said ExxonMobil was currently operating the Cepu block under a technical assistance contract but the terms of this were unclear. ExxonMobil currently operates the entire Cepu block in a contract that will expire in 2010 although Kardaya said the government is reviewing ExxonMobil's request for a contract extension.