Pertamina deserves larger stake in CPP oil block

State owned oil and gas company Pertamina deserves to obtain a larger interest in the Coastal Plains Pekanbaru (CPP) oil block, according to the company's director for exploration and production Gatot Karyoso Wiroyudo.

"If it is for the interest of the all parties, Pertamina should be given a larger stake in the CPP oil block. Pertamina is not only technically capable but it also has strong international relationships although Riau and many other people have questioned the credibility of the company," he told Bisnis Indonesia on Monday.

In addition, the state owned oil and gas company's good access to the banking industry could also become an added value in obtaining the much needed investment funds to support the operation of the oil block, he said.

Iin Arifin Tahyan, the secretary of the board of commissioners of Pertamina, said on Saturday that based in the ongoing negotiations, Riau would likely agree to work with Caltex Pasific Indonesia and Pertamina in operating the oil block.

The government has agreed in principal to name the provincial administration of Riau to take over the management of the CPP oil block after the current contract, now held by Caltex, expires in August next year. (*)