Caltex hails govt decision to delay transfer of CPP field to Riau

PT Caltex Pacific Indonesia (CPI) has hailed the government's decision to delay the transfer of the rights to operate and manage the Coastal Plain Pekanbaru (CPP) oil block to Riau province, saying the rights to operate the oil field should be given after the new oil and gas law is implemented, Suara Pembaruan reported on Monday.

Caltex spokesman Renville Almatsier said in Pekanbaru on Monday that the delay in the handover of the contracts benefited all concerned parties.

"I think the decision to transfer the management should be made after the introduction of the new oil and gas law so that the operation of the CPP oil block will be covered by a strong legal base," he said. The government is currently preparing a new draft law on oil and gas, which will among others, call for the removal of the exclusive rights now given to Pertamina in operating the country's oil block.

The government approved early this year Riau's demand to take over the operation of the CPP oil block after the current contract, which is now held by Caltex expires in August next year.

The ministry of mines and energy has said that the final decision whether or not allow the Riau province to operate the oil block should be given in August, next month to give the province enough time to prepare for the operation of the oil block.

But on Monday, Rahmat Sudibyo, the director general of oil and gas at the ministry, said that it was not certain yet whether the province could receive the final approval to manage the CPP oil bock in August this year, because the proposal submitted by the province had yet to cover technical details for the future operation of the oil block. (*)