Pertamina awaiting Habibie's decision

Pertamina awaiting Habibie's decision

JAKARTA (JP): State oil and gas company Pertamina said on
Friday it was awaiting President B.J. Habibie's decision on the
development of the Coastal Plains Pekanbaru (CPP) block in Riau
after 2001.

Pertamina's exploration and development director Priyambodo
Mulyosudirjo said the final decision would rest with the
President.

The CPP block is currently being developed by PT Caltex
Pacific Indonesia (CPI) with an output of 77,000 barrels per day.
Caltex's contract on the block will expire in August 2001.

"It was then president Soeharto who decided to transfer the
development of the block to Pertamina (last year). Thus, if there
is now a different policy regarding the block, we can't accept it
until it is approved by the President," Priyambodo said.

A crossministerial task force -- composed of officials from
the ministries of mines and energy, finance, state secretariat
and national development planning -- recommended last week that
the block be jointly developed by Pertamina and Caltex after
2001.

The team also recommended that Caltex and Pertamina take equal
stakes in the CPP block joint venture.

It also advised the government to increase its share in the
block's oil wells -- which are developed with primary technology
and secondary enhanced oil recovery (EOR) technology -- from its
present 85 percent.

Minister of Mines and Energy Kuntoro Mangkusubroto suggested
last week that he would endorse the recommendation.

Kuntoro said: "Why would you bother setting up a team if you
won't take its advice?"

He added, however, that he would consult with Habibie and the
House of Representatives' Commission V for mines and energy,
industry and trade, cooperatives, investment, manpower,
environment on the team's recommendation.

Priyambodo argues that the right to make final decision on who
will develop the block lies with Habibie, not Kuntoro.

Jointly owned by giant U.S. oil companies Chevron Asiatic Ltd
and Texaco Overseas Petroleum, Caltex has pushed for years to
extend its contract on the block for a further 20 years, but
Soeharto decided last year to transfer exploitation of the block
to Pertamina after the contract ends.

BHabibie's administration opted to review the decision given
Pertamina's financial woes. (jsk)