US oil giant Exxon Mobil Corp's representatives met with Indonesian government to resolve a contractual dispute
US oil giant Exxon Mobil Corp's representatives met with Indonesian government to resolve a contractual dispute over an oil field on the island of Java.
Exxon Mobil bought rights to the Cepu field in 2000 from a company run by a son of Indonesia's ex-dictator Suharto, which got the rights to exploit the field from state-owned oil and gas company PT Pertamina.
Soon after that, Exxon Mobil found huge reserves that Pertamina had failed to locate in 30 years of exploration. However, Indonesia has insisted that Exxon Mobil share a portion of its find with Pertamina, in exchange for an extension of Exxon Mobil's contract over the area by 20 years.
Since taking office in October last year, President Susilo Bambang Yudhoyono has called for the two sides to settle the dispute and he assured U.S. President George W. Bush during a meeting in November that he would seek an "immediate" resolution.