Pertamina, Riau to take over CPP block next year<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government expects state-owned oil and gas company
\nPertamina and the province of Riau to set up a joint venture to
\ntake over the operation of the Coastal Plains Pekanbaru (CPP)
\nblock from American firm PT Caltex Pacific Indonesia in February
\nnext year, a senior official of the Ministry of Energy and
\nMineral Resources announced on Friday.<\/p>\n
Director general of oil and gas Rachmat Sudibyo said both
\nparties were still negotiating the share composition in the joint
\nventure, but the gap between Pertamina's proposal and Riau's had
\nnarrowed.<\/p>\n
Riau insisted on a 55 percent share for itself and a 45
\npercent share for Pertamina. However, Pertamina wanted equal
\npartnership, Rachmat said.<\/p>\n
Earlier, Riau demanded up to 75 percent stake in the planned
\njoint venture.<\/p>\n
\"We hope the CPP block will be taken over by Pertamina and
\nRiau in February or March next year,\" Rachmat said.<\/p>\n
Located in the oil rich province of Riau, the CPP block, which
\nnow produces about 50,000 barrels of oil per day, was formerly a
\nconcession of Caltex.<\/p>\n
The American company's contract over the block expired last
\nAugust but the government has extended the contract until August
\nnext year as Riau and Pertamina have yet to reach an agreement
\nover share composition.<\/p>\n
According to Rachmat, the new joint venture needs about six
\nmonths to complete the process of taking over the operation of
\nthe oil field.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-riau-to-take-over-cpp-block-next-year-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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