Pertamina, Riau negotiations on CPP block deadlocked
Friday, November 24 2000 - 04:30 AM WIB
President of state oil and gas company Pertamina Baihaki Hakim said on Thursday that the state company and the Riau provincial administration had failed to reach an agreement on the share composition of the planned joint venture to develop the Coastal Plains Pekanbaru block in Riau.
Baihaki said Pertamina had reported the disagreement to the government, which was expected to make a final decision on the matter.
He said Pertamina insisted that it should have 51 percent shares in the joint venture, but Riau wanted to hold 70 percent shares.
"The ball is now at the government. Pertamina is waiting for the government to make a final decision on the matter," Baihaki said in Jakarta during an event to celebrate Pertamina's 43rd anniversary.
The block is currently operated by American oil and gas company PT Caltex Pacific Indonesia, whose contract on the block expires next year.
Caltex is also seeking to participate in the future development of the block, but Riau has said it only wants to team with Pertamina in the development of the block. (Epin)