Pertamina ready to lend Riau in necessary funds for managing CPP oil block
Friday, January 4 2002 - 03:27 AM WIB
The state-owned oil and gas firm Pertamina is ready to lend the Riau provincial administration some US$25 million in funds needed to manage the Coastal Plain Pekanbaru (CPP) oil block, according to company president Baihaki Hakim.
?We are ready to cover the funds if the Riau administration has no money,? Baihaki was quoted by the Suara Karya daily as saying on Thursday.
Pertamina, and the Riau administration have reached an agreement to co-manage the CPP oil block when the contract of the current operator PT Caltex Pacific Indonesia expires on Aug. 8, 2002.
Riau administration and Pertamina agreed each would have a 50 percent participating interest of the contractor share in the CPP oil block.
The two would set up a consortium to operate the oil block and it would need some $50 million to maintain the current oil production level of around 50,000 barrel per day.(*)