BSP can maintain production level of CPP oil block

PT Bumi Siak Pusako (BSP)-Pertamina, the new operator of the Coastal Plain Pekanbaru (CPP) oil block has been able to main the production level of the oil block at 40,000 barrels per day since it took over the oil block last week, Kompas reported on Tuesday.

Nawasir Kadir, the deputy senior manager of BSP-Pertamina, said he was optimistic that the new operator would not face difficulties to increase the production from the current level.

BSP-Pertamina, a consortium of a company owned by the provincial administration of Riau and Pertamina, took over the operation of the oil block last week after the contract awarded to PT Caltex Pacific Indonesia to operated the oil block expired.

According to Nawasir, the change in the management and the operation ran smoothly as expected thanks to comprehensive preparation made by the new operator. "We learned all the system applied by CPI and prepared the takeover for nearly six months," he added.

The CPP oil block which has 450 oil wells was one several oil blocks operated by Caltex in Riau province. Caltex has said that the transfer of the oil block would have caused a decline in Caltex?s crude oil production by about 8 percent. Previously the oil giant?s oil production from the province represented about 60 percent of the country?s total oil production. (*)