Caltex in talks for exploration rights<\/p>\n
SINGAPORE (Dow Jones): PT Caltex Pacific Indonesia is
\nnegotiating with state-owned Pertamina for additional exploration
\nand production acreage in Indonesia, Caltex Pacific Managing
\nDirector Bob Galbraith said late Thursday.<\/p>\n
It is still evaluating blocks offered under Indonesia's
\ncurrent exploration tender, he said, adding that the blocks for
\nwhich it is in talks aren't included in the tender.<\/p>\n
New blocks may allow Caltex Pacific - which primarily operates
\nmature fields in Riau Province on the island of Sumatra - to
\nboost production from current levels of 670,000 barrels a day.<\/p>\n
The company is losing an average 40,000 barrels a day of crude
\noutput, due to field decline and ongoing roadblocks at its Riau
\noperations, Galbraith said. Its production averaged 705,000 b\/d
\nin 2000.<\/p>\n
Local residents seeking jobs and land compensation have
\nperiodically blocked roads leading to Caltex Pacific's operations
\nsince last year. The most recent blockade began Monday.<\/p>\n
The company has invested \"a few million\" dollars to drill
\nadditional wells in its Coastal Plains Pekanbaru contract area,
\nwhich will allow it to produce an additional 5,000-6,000 b\/d over
\nthe next several months, Galbraith said.<\/p>\n
The additional production will partially offset field
\ndepletion in the block, which peaked at 70,000 b\/d a few years
\nago. \"We will be fairly happy if we can keep output above 50,000
\nb\/d\" in the CPP block, Galbraith said.<\/p>\n
Caltex Pacific's contract to operate the CPP block expires in
\nAugust this year. Its contract hasn't been renewed, and the block
\nhas become the object of a tug of war between Pertamina and the
\nRiau provincial government.<\/p>\n
They are fighting over a diminishing asset, as uncertainty
\nover the contract's future led Caltex to cut back on investment
\nin the block.<\/p>\n
\"We stopped any investment that wouldn't pay out during the
\nterm of the contract,\" Galbraith said.<\/p>\n
Caltex Pacific Indonesia is a joint venture between Chevron
\nCorp. and Texaco Inc. The two companies announced last year plans
\nto merge.<\/p>\n
Caltex Pacific Indonesia accounts for about half of
\nIndonesia's crude production.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/caltex-in-talks-for-exploration-rights-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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