Govt receives Riau proposal over CPP oil field
By R. Amoros
Tuesday, June 6 2000 - 04:15 AM WIB
The government has received the proposal from the Riau administration over its plans to acquire the so-called Coastal Plains Pekanbaru (CPP) oil field after Caltex ends its contract in August 2001, according to a senior government official.
Director general of oil and gas Rachmat Sudibyo said on Monday that the government would need a week to evaluate the proposal, which was received by the central government on Friday.
But Rachmat said that the Riau administration proposal didn't mention how the local government would finance the future operation of the CPP block, and who would be its partner.
The state oil and gas firm Pertamina, and PT Caltex Pacific Indonesia have both expressed interest to become the partner of the Riau administration to manage the CPP block.
Rachmat insisted that the Riau administration must already have a more concrete plans for the CPP block and the would-be partners by August.
He said that the government must already have a clear picture for the future of the CPP block to avoid a further deterioration in the condition of the oil field.
"We don't want to see the production of the CPP block to continue to decline just because of this kind of uncertainty because all (sides) will suffer a loss," he said. (*)