Pertamina says Caltex fails to deliver promise to increase CPP oil production

State oil and gas company Pertamina on Wednesday said Indonesia?s top oil producer PT. Caltex Pacific Indonesia, a unit of Chevron-Texaco, failed to deliver production increase in Coastal Plain Pekanbaru (CPP) oil block as promised when it was given one year extension to operate the block.

?When Caltex was given one year extension last year, they were committed to make investment to increase production from 40,000 barrels per day (BPD) to 50,000 BPD. Now, two weeks before the extension expires, CPP?s production only 41,000 BPD,? said Efendi Situmorang, Pertamina?s production sharing management director.

Efendi said the failure to increase production was mainly because of lack of commitment from Caltex?s part.

?I?m quite sure when consortium of Pertamina and Bumi Siak Pusako takes over the block, production could be immediately increased,? said Efendi.

A Caltex?s senior official W. Yudiana when contacted by Petromindo. Com admitted that the company failed to increase production as promised.

?That?s because the well that we drilled turned out to be dry. We proposed to Pertamina to drill three more wells, but we were not given permission,? he said.

?We may not be able to increase production, but that doesn?t mean we have no commitment to transfer the block. Will be ready to help the new operator to operate the block by providing necessary facilities,? he said.

CPP?s 20-year contract expired last year but Caltex was given one-year extension. The block will be transferred to Pertamina and Riau administrative-owned company on August 8 this year.

At the peak of its production a few years back, CPP could produce 70,000 BPD. (alex/godang)