Caltex to team up with local company to operate Kisaran oil block

PT Caltex Pacific Indonesia, the country's largest oil producer, will tie up with a national company to operate its Kisaran oil block in North Sumatra, a company official said Wednesday.

?We are still waiting for an approval form BPMIGAS (oil and gas upstream authority) on the involvement of the company in the Kisaran oil block,? Caltex?s president director W. Yudiana Ardiwinata said.

Yudiana said Caltex and the national firm would operate the oil block under a joint venture agreement. Each will have participating interest of up to 50 percent in the oil block.

Yudiana said that Caltex and its partner would begin exploration activities in the Kisaran oil block next year in a bid to determine the actual amount of the existing oil reserves.

Meanwhile, an industry source told Petromindo.Com that it was likely Caltex would take Pacific Oil & Gas Ltd to be a partner to explore and develop the block.

Pacific Oil & Gas aquired a 25 percent stake in Jambi Merang oil and gas block last year. (godang)