Obama's Inauguration Won't Affect Natuna Deal
VIVAnews - Vice President Jusuf Kalla stated that the contract between the Indonesian government and ExxonMobil in the Natuna Block had been terminated as of 9 January 2005. US President-Elect Barack Obama, who will be inaugurated today, Jan. 20, will not affect the contract.
"Whoever the US President is, it will not alter our view on ExxonMobil's contract regarding the Natuna Block," said Kalla on Tuesday, Jan 20. "We will not be affected by Obama," he added.
According to the Indonesian Vice President, ExxonMobil will still have an equal position with other oil contractors with regard to contract with Pertamina. The government had cut off ExxonMobil's contract in 2005 and handed over the contract to Pertamina. "ExxonMobil's contract has been automatically annulled," he said.
ExxonMobil had proposed a contract renewal. However, ExxonMobil had only sent a letter, and not a formal proposal for a contract renewal. Since then, according to Kalla, the government had never considered that a contract with ExxonMobil ever existed.
However, since ExxonMobil wished for renewal, the government has proposed new conditions. But no agreements has been signed.
Kalla stressed that after being diverted to Pertamina, a partner is required due to the project's high risk and complexity. ExxonMobil's position is for the time being parallel with other contractors aiming at the Natuna Block such as Shell, Statoil Hydro Norway, Petronas and BP.
"Any company may propose as long as they meet the conditions," he said.
Translated by: Bonardo Maulana Wahono
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