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Indonesia never got any share of profit from ExxonMobil’s operation in Natuna

After 12 years of operation in Natuna, it was revealed by Alvin Lie, a member of the parliament, last week that Indonesia never got any share of the profit from ExxonMobil, the company which got the contract to manage the natural gas resources in Natuna. It’s among the most interesting, with an estimate of 46 trillion feet cubic of natural gas when surveyed on 1973.

This has been confirmed by Kardaya Warnika, Head of Oil and Gas Management (BP Migas). He said that from 1980 to 1994, Indonesia still got a percentage of profit share from ExxonMobil’s (then Esso) Natuna operation. But on 1994, Pertamina and Esso changed the contract, entitling Esso to 100% of the revenue from the operation. Indonesian central government only got the tax payment from them.

Oil expert Kurtubi said that this is very strange, considering that normal profit-sharing agreement usually divides profit in 60% – 40% scheme — the government getting 60% of the profit, and the contractor entitled to 40% of it. And this is after paying the tax.

ExxonMobil’s speaker, Deva Rahman, refused the allegation. He said that the Natuna situation is different. With over 70% CO2 content, it require high cost and technology for its operation. He said that the agreement has been understood and mutually agreed between the parties involved.

Speaker for Mining Advocacy Network (JATAM, Jaringan Advokasi Tambang), Andre S. Wijaya, said that this is not the only case. He said that ExxonMobil also works on a scheme that put Indonesian government and people in a losing position in their Aceh operation.

Source: Radio Nederland

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