Pertamina claimed Japanese funding for Cepu

Pertamina was optimistic that it could get funding support from Japan through Japan Bank for International Cooperation (JBIC) and Mitsubishi for the giant Cepu oil field.

Deputy president director of Pertamina Mustiko Saleh said the company has all necessary support for the project including foreign banks which are ready to lend money for Cepu project.
"Long queue of banks behind us. JBIC, Mitsubishi, and others," he told parliament members today.

Pertamina was seems trying to gather more support and political pressures from the House of Representative (DPR) as government might appoint ExxonMobil as the operator for Cepu block. The company insists it could operate the block, or at least alternatingly with Exxon for five years each. But government rejected the proposal saying it would complicate the operation. Government previously raised concern over Pertamina's financial capability to operate the block.
Total investment for Cepu project is expected to reach US$2.5 billion, of which Pertamina should provide 45% (around US$1.1 billion). Pertamina argues that US$50 million to US$100 million from the company would be enough for the first stage of the project.
A cabinet meeting last Friday failed to make decision on Cepu operator because, among others, of the financial issue of Pertamina.
The planned shareholder meeting to make decision on Pertamina's investment has been postponed again to March 15, give enough time for the company to maneuver on the Cepu settlement. Government also postponed the replacement of current board of directors.

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