Pertamina maybe given 90 pct of Riau's CPP

Reuters recently reported the government may give state oil company Pertamina 90 percent of the disputed Coastal Plain Pekanbaru (CPP) oilfield in the Sumatran province of Riau.

``The government is very interested in maintaining the production of the CPP field. Therefore, to give Pertamina a 90 percent stake is the only option,'' the official, a senior government official who declined to be identified, told Reuters.

Talks between Pertamina and Riau province have been deadlocked, with the province insisting on a 70 percent stake in the 60,000 barrel per day field operated by Caltex Pacific Indonesia, whose contract ends in August next year.

``To maintain production in CPP, we need investment, technology and a network for marketing the crude. So it is not easy,'' the official said.

Caltex is jointly owned by oil and gas giants Chevron Corp and Texaco Inc. (*)