No mediation for Indonesia, Exxon over gas field - report |
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Wed, 21 Mar 2007 07:43
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JAKARTA (XFN-ASIA) - The Indonesian government and US oil giant Exxon Mobil have decided not to seek arbitration during talks over disputed drilling rights for a major gas field off Borneo, the official Antara news agency said.Indonesia last year terminated a contract with the firm to develop the field in the Natuna Sea, claiming slow progress.Exxon Mobil disputed the move, saying the contract was valid but later agreed to talks.'Both parties will not take the case to an arbitration body during the negotiation period,' Antara quoted senior Indonesian official Kardaya Warnika as saying.The government was still considering proposals advanced by Exxon Mobil during the talks and had asked for some new terms, including on profit sharing, he said.'We have not received them yet. We have asked that they be submitted as soon as possible,' he said.Reports said Exxon Mobil had proposed the development of the field be halted during the negotiations.Exxon Mobil has said it has spent more than 350 mln usd on the block so since development work began in 1980.
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