Caltex clarifies

Caltex clarifies

We would like to extend our appreciation for the publication
of an article about PT Caltex Pacific Indonesia (Caltex)'s
request for extension of the Coastal Plains Pekanbaru (CPP) Block
in The Jakarta Post, April 18, 2001, page 12.

We would further like to clarify a couple of statements in the
story, so that there is no misunderstanding as to our position on
CPP.

First, in the paragraph which states "Caltex decided to
withdraw from negotiations, after the government also allowed
Riau to have a stake in CPP", we would like to emphasize that our
reason for temporarily withdrawing from the negotiations was
because the negotiations had now entered a phase between two
government entities, the Riau government and the Central
government, debating over which entity should have control over
management of the block. Caltex, as a non-political entity, has
not been a party to those discussions. However, we fully expected
to rejoin the negotiations on joint interest ownership of the PSC
once the management issue was resolved.

Next, we'd like to correct the use of the term "unattractive",
with the more proper term "uneconomical". As you know, Caltex has
a long standing and excellent relationship with the people and
governments of Riau. Future opportunities to partner or work with
Riau will always be attractive to Caltex. To date and in regard
to CPP, Caltex has not been offered any commercially or
economically attractive option involving our continued
participation. We will, of course, seriously consider any
commercially or economically attractive option involving our
continued participation in the CPP, should one be offered.

We would also like to clarify the intent of the environmental
study currently underway. CPP is extremely proud of our
environment performance in the conservation areas that encompass
the CPP Block. Site restoration is an ongoing process throughout
all our contract areas. Normal industry practice when working
interest ownership of a producing oil field transfers in part or
in whole to other parties is to conduct a baseline environmental
assessment to document the status of the concession at the time
of the transfer. It is for that purpose that we are conducting
the study in consultation with Pertamina. That study has been
underway for many months only because of the extensive land area
within the Block.

HARRY BUSTAMAN

Manager, Corporate Communications

Caltex

Jakarta