CPP oil output continues to decline: BP Migas

CPP oil output continues to decline: BP Migas

The Jakarta Post, Jakarta

The oil output volume at the Coastal Plains Pekanbaru (CPP) block
in Riau has declined since last year and has now reached a record
low, said an official.

Head of the Oil and Gas Implementing Body (BP Migas) Rachmat
Sudibyo said on Tuesday that the oil production level was now at
28,000 barrels per day, compared to 50,000 barrels a day last
year.

"It (the declining trend) must be stopped," he was quoted by
Antara as saying on Tuesday.

Speaking at an oil and gas forum, Rachmat said that the CPP
block produced some 70,000 barrels of oil per day when it was
still under the management of PT Caltex Pacific Indonesia (CPI).

The block was transferred in August last year to a joint
venture between state-owned oil and gas company Pertamina and the
province's company PT Bumi Siak Pusako (BSP) after CPI's contract
expired.

Baihaki Hakim, president of Pertamina, previously said that
the declining oil output of the block was caused by an internal
revenue-sharing dispute within PT BSP, and had prevented
Pertamina from further exploring new wells in the CPP block.

Rachmat said that BP Migas, in its capacity as the highest
authority in the oil and gas upstream sector, would summon both
sides and seek a solution to the case.

Oil is one of the country's major export revenues, and a
decline in the oil output would further limit Indonesia's ability
to finance its development programs.