Caltex waits for government decision on CPP oil block
Wednesday, May 10 2000 - 02:00 AM WIB
PT Caltex Pacific Indonesia (CPP) gave no reaction when President Abdurrahman Wahid decided recently to allow the Riau provincial administration to operate its Coastal Plain Pekanbaru (CPP) oil block once the current contract expired in August, next year.
"Not?now, if we comment the issue, our statement could be misinterpreted," the company's manager for public relations Poedyo Oetomo told Kompas on Tuesday.
Caltex produces around 7,000 barrel of oil per day from CPP oil block, about 10 percent of its total production in the province. The government last year allowed the oil giant to form a joint venture with state oil company to operate the oil block for another 20 years but the Gus Dur's decision to operate the oil block automatically annulled the joint venture agreement.
Riau has four options in selecting its partners in operating oil block and it took the last alternative, which enables it to choose it own partners. It means that the province is free to select which companies it will cooperate with in operating the oil block. It could be with Pertamina, or with Caltex or with other oil firms.
The Riau government has not selected which companies it will appoint and "that's why we will not give our comment, until decision is made," Poedyo said.
Meanwhile a member of the Commission VIII of the House of Representatives (DPR) Priyo Budi Santoso said that the House did not really matter about the appointment of the Riau province as the operator of the CPP oil block as long as its operation is based on the existing law.
"Although, the President has decided the involvement of the Riau province in managing the oil block, the ministry of mines and energy should put it right on the track," he told Republika daily.
According to the law, all the country's oil and gas resources should be operated under a production-sharing contract with Pertamina. Under this cooperation scheme, Pertamina will get 85 percent of the oil block and the other 15 percent go to the operator.
Priyo said that whoever operates the oil block, Pertamina should receive 85 percent of the oil production. (*)