Indonesia Rejects Exxon Proposal to Boost Cepu Block Output

Indonesian authorities rejects Exxon Mobil's proposal to boost Cepu block output (Antara Photo/Aguk Sudarmojo)

By : Wilda Asmarini | on 5:19 PM June 14, 2016
Category : Business, Commodities

Jakarta. Indonesia has rejected a proposal to increase crude output from the Cepu block operated by US oil and gas giant Exxon Mobil to up to 200,000 barrels per day, the country’s upstream oil and gas regulator (SKKMigas) told parliament on Tuesday (14/6).

SKKMigas disagrees with Exxon’s analysis of the potential for the project based on environmental and subsurface considerations, SKKMigas chief Amien Sunaryadi said.

Exxon proposed the increase to 200,000 bpd last month noting potential in the project’s reservoirs but said the decision was in the government’s hands.