PetroChina eyeing stake at CPP Block

Chinese oil giant PetroChina is eyeing stake at the Coastal Plain Pekanbaru (CPP) oil block in Sumatra, where oil production has declined, Minsiter of Energy and Mienral Resources Purnomo Yusgiantoro said on Friday as reported by media.

Production at the onshore CPP block, jointly owned by state oil firm Pertamina and the Riau province's PT Bumi Siak Pusako, has steadily dropped to around 20,000 barrels per day (bpd) of crude oil, from 60,000 bpd six years ago.

"The government is disappointed with the development of the CPP block as oil output in declining. PetroChina has shown it is interested to enter into the CPP block," Purnomo told reporters.

PetroChina has several oil and gas fields in Indonesia, including the Jabung block in Jambi.

Purnomo said there are still potential oil reserves in the CPP block, but that developing these areas would require sophisticated technology and investment.

Pertamina and Riau province took over the block from Caltex Pasific Indonesia after its contract expired in 2002.(*)