Govt to ask Caltex to manage CPP
Wednesday, January 3 2001 - 05:00 AM WIB
The government is considering to ask oil and gas firm PT Caltex Pacific Indonesia (CPI) to continue managing the Coastal Plain Pekanbaru (CPP) oil field following a deadlock in the negotiation between the state-owned oil and gas firm Pertamina with the Riau administration.
?That?s the rumors I heard. But officially, I have not received such demand,? said CPI president Humayun Bosha on the sidelines of a new year gathering with Pertamina.
He said that CPI would welcome the demand to continue managing and developing the CPP oil block. He added that CPI would make new investment to increase the CPP production capacity.
?In the first stage, CPI will invest US$500 million, but the funds would not be available until there?s clarity on who will manage the oil block,? Humayun said.
CPI will end its contract on CPP in August this year. The Riau administration has demanded full control over the oil field, but negotiation with Pertamina and the central government seemed to come into a deadlock.
Pertamina has planned to let CPI to continue the management of the CPP oil field because of the company?s experience, and strong capacity.
Humayun said that CPI would agree to allow the Riau administration to have ownership in the CPP oil block, but not management role.(*)