Caltex wants to become future operator of CPP oil field

PT Caltex Pacific Indonesia hopes the government will reappoint it as the operator of the Coastal Plain Pekanbaru (CPP) oil block once the current contract ends in August this year, Riau Pos reported on Saturday.

Caltex President Humayunbosha said that the company still had the chance to be reappointed as the operator although the government was not involved in the negotiations on the establishment of a joint venture to run the oil block.

"We have even established a special team to anticipate the possibility of being reappointed as the operator of the oil block," he was quoted as saying. He added that the team was preparing all necessary measures to resume the new job.

In early 1999, the government agreed to involve Caltex in the future operation of CPP in cooperation of Pertamina. But the deal was later dropped after the government decided to add the Riau administration as new partner. The oil giant then withdrew from the negotiation after realizing that it would not be given a significant stake in the joint venture.

The negotiations between Pertamina and Riau have also failed as both insisting to have a majority stake in the joint venture. The government later decided to give Riau 20 percent and the other 80 percent to Pertamina as the representative of the government.

The new deal angered Riau but it later agreed as long as it is given the chance to be appointed as the day to day operator of the oil block.(*)