Kondur's ability to operate CPP block doubted

Members of the legislative council of the Riau province have doubted the capability of PT Kondur Petroleum in managing the Coastal Plain Pekanbaru (CPP) oil block, Berpolitik.com news online service reported on Saturday.

Sudarman A. Ade of the legislators said he doubted the capability of the oil company to take the place of PT Caltex Pacific Indonesia (CPI) in managing the oil block, which produces about 80,000 barrel of crude oil per day.

The legislator said that he still preferred CPI to operate the oil block when the current contract expired in August, next year because the oil giant had proved that it had been able to provide sufficient community development to the locals.

Kondur is one of local oil companies, which have expressed interest to join the Riau province in operating the oil block. The other includes Medco Corporation and the Bakrie Group but the two companies later withdrew their statement.

Kondur's Chief Executive Officer and President Rennier A.R. Latif expressed the company's interest in a meeting with the chairman of the province's legislative council, Chaidir, and other senior legislators on Wednesday.

He said that if the company was given the chance, it would be able to raise the current production level at CPP because the CPP oil field has a similar structure with the one it operated in the Malaka strait.

The CPP oil block is being operated by PT Caltex Petroleum Indonesia. But the contract will expire in August, next year. The government previously asked Pertamina and Caltex to take over and operate the oil block once the current contract is terminated. (*)