Caltex hands over Riau?s CPP oil block

Oil producer PT Caltex Pacific Indonesia (CPI) on Tuesday formally handed over the management and operation of Coastal Plain Pekanbaru (CPP) oil block in Riau to a consortium of state oil and gas firm Pertamina and Riau Province?s company PT Bumi Siak Pusaka.

The consortium?s authority to manage and operate the oil block will become effective on Friday (August 9). CPI?s 20-year contract to operate CPP ends on Thursday.

In a ceremony held on Tuesday in Jakarta, CPI president director Humayun Bosha signed a document to transfer CPP to the Indonesian government through Balak chairman Rachmat Soedibjo. In return, Rachmat handed over the oil block to Bumi Pusako president director Azali Djohan and Pertamina?s upstream director Iin Arifin Takhyan.

The CPP block is part of CPI?s oil concession areas in Riau. The oil block handover ended CPI?s 20-year contract to manage and operate the block. CPI is a unit of world energy giant Chevron Texaco, and is Indonesia?s largest onshore oil producer.

The initial plan was that CPI would hand over the CPP block in August 2001. But the plan was delayed for one year pending the conclusion of negotiations between the central government and Riau Province on the ownership of the project.

The oil block, located onshore Riau and having 28 oil fields, presently produces some 40,000 barrels per day (BPD) of oil. It covers around 96,000 sq. kilometers of land.

Pertamina and Riau Province in January signed 50-50 percent share agreement on the CPP oil block. It is located in Siak regency, Riau. (godang)