Pertamina awaiting Habibie's decision<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina said on
\nFriday it was awaiting President B.J. Habibie's decision on the
\ndevelopment of the Coastal Plains Pekanbaru (CPP) block in Riau
\nafter 2001.<\/p>\n
Pertamina's exploration and development director Priyambodo
\nMulyosudirjo said the final decision would rest with the
\nPresident.<\/p>\n
The CPP block is currently being developed by PT Caltex
\nPacific Indonesia (CPI) with an output of 77,000 barrels per day.
\nCaltex's contract on the block will expire in August 2001.<\/p>\n
\"It was then president Soeharto who decided to transfer the
\ndevelopment of the block to Pertamina (last year). Thus, if there
\nis now a different policy regarding the block, we can't accept it
\nuntil it is approved by the President,\" Priyambodo said.<\/p>\n
A crossministerial task force -- composed of officials from
\nthe ministries of mines and energy, finance, state secretariat
\nand national development planning -- recommended last week that
\nthe block be jointly developed by Pertamina and Caltex after
\n2001.<\/p>\n
The team also recommended that Caltex and Pertamina take equal
\nstakes in the CPP block joint venture.<\/p>\n
It also advised the government to increase its share in the
\nblock's oil wells -- which are developed with primary technology
\nand secondary enhanced oil recovery (EOR) technology -- from its
\npresent 85 percent.<\/p>\n
Minister of Mines and Energy Kuntoro Mangkusubroto suggested
\nlast week that he would endorse the recommendation.<\/p>\n
Kuntoro said: \"Why would you bother setting up a team if you
\nwon't take its advice?\"<\/p>\n
He added, however, that he would consult with Habibie and the
\nHouse of Representatives' Commission V for mines and energy,
\nindustry and trade, cooperatives, investment, manpower,
\nenvironment on the team's recommendation.<\/p>\n
Priyambodo argues that the right to make final decision on who
\nwill develop the block lies with Habibie, not Kuntoro.<\/p>\n
Jointly owned by giant U.S. oil companies Chevron Asiatic Ltd
\nand Texaco Overseas Petroleum, Caltex has pushed for years to
\nextend its contract on the block for a further 20 years, but
\nSoeharto decided last year to transfer exploitation of the block
\nto Pertamina after the contract ends.<\/p>\n
BHabibie's administration opted to review the decision given
\nPertamina's financial woes. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-awaiting-habibies-decision-1447893297",
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"sponsor": "Okusi Associates",
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