Pertamina to take part in CPP management in February

State oil and gas company Pertamina has planned to take part in the management of Pekanbaru Coastal Plain (CPP) in February of next year with an aim to smoothen its taking over of the oil mining operation from PT Caltex Pacific Indonesia (CPI) scheduled in August of 2002.

A source at Pertamina?s upstream directorate told Petromindo.com on Thursday it must strictly follow the time schedule otherwise it would face too many difficulties in taking over CPP in August.

?In order to ensure that we will be able to fulfill the time schedule, we have started negotiations with the local government about the volumes of shares to be owned by it,? the source said.

Meanwhile, Pertamina?s upstream director Iin Arifin Takhyan admitted on Thursday that they had held such negotiations.

He said Pertamina had offered the Riau government 15 percent of CPI shares, compared with the 10 percent allowed by existing regulations.

Iin said CPI?s workers would have to continue their activities at CPP after Pertamina takes part in the management of the oil operation in February.

?Beginning from February, there will be a transition period. Accordingly, the two sides will be involved in the management of the block,? Iin said.

Initially, Pertamina would take over CPP in August of this year. It did not happen because the government and the Riau government failed to reach an agreement about their stake in the oil-mining project. This caused the government extend CPI?s contract to one year.

CPP block is currently producing about 50,000 barrels per day of crude oil. (*)