Caltex to operate three more oil rigs in CPP oil block

PT Caltex Pacific Indonesia (CPI) will soon operate three more oil rigs in the Coastal Plain Pekanbaru (CPP) oil block in a bid to boost the block's oil production which has showed a significant decline in recent months, Riau Pos reported on Thursday.

Caltex's spokesman Poedyo Oetomo said in Pekanbaru on Wednesday that the new oil rigs located in Zamrud, Buntun, Benua and Beruk oil wells were now being constructed.

He said that the oil production in the CPP and other oil blocks had dropped by between 18 percent and 20 percent a year.

Poedyo said that the production in the CPP oil block which at present averaged at about 51,000 barrels per day would continue to decline if no efforts were made to find and develop new oil wells in the block.

CPP, one of several oil bocks operated by Caltex, has 250 oil wells. The oil giant's contract to operate the oil block will expire in August next year. The government will not extend the contract but has decided to transfer its operation to a joint venture to be formed by Pertamina and the local government.

The central government has offered the Riau province to have 10 percent in the planned joint venture and the other 90 percent to Pertamina. But the offer was rejected by the local authority and insisted to have at least 70 percent.

Sources said that Pertamina would share its ownership in the oil block with Caltex but the state oil and gas company has not decided how it will split the ownership with the foreign oil giant.(*)