Pertamina, Caltex likely to operate CPP block jointly<\/p>\n
JAKARTA (JP): State-owned oil and gas firm Pertamina and its
\nlargest oil contractor PT Caltex Pacific Indonesia may jointly
\ndevelop the Coastal Plains Pekanbaru (CPP) oil block in Riau,
\nafter Caltex's contract on the block expires in 2001.<\/p>\n
Director General of Oil and Gas at the Ministry of Mines and
\nEnergy, Soepraptono Soelaiman said on Wednesday that the cross
\nministerial task force, which was formed by the government to
\nstudy the best alternatives for the development of the block,
\nrecommended that the block be jointly operated by Pertamina and
\nCaltex.<\/p>\n
"The final results of the meeting of the task force last night
\npointed to that (the joint operation alternative)," Soepraptono,
\nwho is a member of the task force, was quoted by Antara as
\nsaying.<\/p>\n
Soepraptono, however, noted that Minister of Mines and Energy
\nKuntoro Mangkusubroto had the final say.<\/p>\n
Kuntoro earlier told the House of Representatives's Commission
\nV for mines and energy, industry and trade, cooperatives,
\ninvestment and environment that he would consult with the
\ncommission before making the final decision.<\/p>\n
CPP block currently produces 77,800 barrels of oil per day
\n(bpd), accounting for 9.7 percent of Caltex's production of
\n765,000 bpd. Caltex is the country's largest oil producer.<\/p>\n
Caltex, which is jointly owned by U.S. giant oil companies
\nChevron Asiatic Ltd and Texaco Overseas Petroleum, pushed for
\nyears to extend its contract on the block for a further 20 years,
\nbut President Soeharto decided last year to transfer the
\nexploitation of the block to Pertamina.<\/p>\n
Soeharto's successor B.J. Habibie decided to review the
\ndecision given Pertamina's financial woes amid the monetary
\ncrisis.<\/p>\n
Kuntoro instructed the task force, composed of officials from
\nthe Ministry of Mines and Energy, the Ministry of Finance, the
\nNational Development Planning Board, and the State Secretariat,
\nto weigh four alternatives for the future development of the
\nblock -- allow Caltex to continue developing the oil block;
\ntransfer it to Pertamina; ask both to cooperate in developing the
\nblock; or put it up for an open tender.<\/p>\n
Executives at both Caltex and Pertamina have indicated that
\nthey could work together to develop the block.<\/p>\n
Soepraptono said the task force proposed the government make
\n"a more favorable production sharing contract (PSC)" on the
\nblock.<\/p>\n
"The number of the government's shares has yet to be
\ndiscussed," he said.<\/p>\n
Except for oil projects in frontier areas, the government
\nnormally collects 85 percent of income from Pertamina's
\ncontractors and leaves the remaining 15 percent for the
\ncontractors. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-caltex-likely-to-operate-cpp-block-jointly-1447893297",
"image": ""
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