Exxon, Pertamina Fight For Cepu Oilfield

Indonesia would soon determine the operator of the $2 billion Cepu oilfield in East Java province, Indonesian Vice President Jusuf Kalla said here Thursday.

Deadline for the state oil firm PT. Pertamina and US-based oil company Exxon Mobil to settle their dispute on the operation expired on Tuesday, Minister of State Enterprises Sugiharto said.

Exxon Mobil and Pertamina had been locked in a dispute for months over which company should operate the oilfield, that targeted to begin production in 2008.

The block, one of the Exxon's ten biggest undeveloped oilfinds,is targeted to produce about 180,000 barrels per day and can increase 20 percent of the country's current production of 1.05 million barrel per day.