Pertamina agrees to form JV to operate CPP Block

Stated-owned oil and gas PT Pertamina agreed to form a joint venture company (JV) with Siak owned company PT Bumi Siak Pusako (BSP) to jointly operate Coastal Plain Pekanbaru (CPP) block, Koran Tempo reported Monday.

Pertamina?s upstream director Sukusen Soemarinda said that Pertamina and BSP would get equal shares in the JV, contrary to BSP?s demand to get between 55 to 70 percent shares on the JV.

Earlier, Siak Regent Arwin A.S. said that his administration will take this case to arbitration if Pertamina fails to meet a new terms of the joint venture in the near future.

Pertamina and BSP jointly operate the block under JOB scheme since taking over from Caltex Pacific Indonesia in 2001.

CPP block is a mature field and it requires a proper thought in choosing secondary and tertiary recovery. The oil production from the block reached about 29,500 to 32, 000 barrels per day (bpd) in 2005. (*)