Govt to hold talks with operators of CPP oil block

Oil and gas director general Iin Arifin Takhyan has been asked to discuss with leaders of state oil and gas firm Pertamina and Riau Province?s PT Bumi Siak Pusako on ways to prevent oil production from Coastal Plain Pekanbaru (CPP) block from falling due to a dispute over the management of the block.

?I have asked the director general to hold talks with commissioners of Bumi Siak Pusako and Pertamina,? Minister of Energy and Mineral Resources Purnomo Yusgiantoro told reporters Monday.

Pertamina and Bumi Siak Pusako jointly operate CPP block in Riau, with the latter representing the interests of Riau province as a whole.

Purnomo said however that the government would not meddle in the dispute between Riau province and Siak regency over the role of Bumi Siak Pusako. Riau governor Saleh Djasit had accused the company, which is owned by Siak regency administration, of acting for the interests of the regency.

Oil production from CPP block reached 50,000 barrels per day (BPD) last August when Caltex Pacific Indonesia handed it over to the government. Meanwhile, Pertamina's upstream acting director Eteng Salam told reporters last week that production from the block was currently stable at around 34,000 BPD.

Pertamina and Bumi Siak Pusako had planned to jointly invest around US$70 million to boost production in CPP block to 50,000 bpd. (godang)