CPI allocates $3.4 billion investment this year
Wednesday, June 12 2013 - 01:57 AM WIB
PT Chevron Pacific Indonesia (CPI) has allocated investment worth US$3.4 billion for this year, which among other things would be used to help achieve oil lifting target of 320,000 bopd.
CPI President Director Hamid Batubara during a meeting with the House of Representatives Commission VII on energy on Tuesday said that about $2.8 billion will be used to finance operations, and the remainder for working capital.
Hamid said that the company faces two major obstacles in its operations in Indonesia. The first is with regard to lengthy bureaucratic procedure in obtaining permit for land acquisition.
He said that the bureaucratic procedure has become lengthier since the issuance of Law No 2/2012, under which permit for land acquisition must first be applied with the upstream oil and gas authority (SKK Migas), which then would forward it to the National Land Agency (BPN), which then would request the permit from the local governor. Prior to the issuance of the law, Hamid said, the company would only need to talk with the land owner.
Another major obstacle that may undermine CPI?s production in the future is the lingering bioremediation case. The Attorney General?s Office has alleged graft in the company?s bioremediation project. CPI has said the accusation as baseless, arguing it has conducted the bioremediation project in line with the existing laws and regulations in Indonesia.
Hamid said that the bioremediation project could hamper the company?s production activities in the future as bioremediation contractors may now be afraid of carrying out the necessary project to deal with the waste of oil production.
Editing by Reiner Simanjuntak