Petronas ready to take part in CPP operation
Monday, January 7 2002 - 01:51 AM WIB
?For Petronas, if it is economically feasible, and there is an opportunity to do so, why not,? Malaysian consul Abdul Othman was quoted by Riau Post as saying.
He said that Petronas, which at present has expanded its oil exploration activities into several countries including Indonesia, has both financial capability and technology to take part in the CPP operation.
The state oil and gas firm Pertamina, and the Riau provincial administration have reached an agreement to manage and operate the CPP oil block when the contract of the current operator PT Caltex Pacific Indonesia expires on Aug. 8, 2002, according to a Pertamina press statement released on Thursday.
The statement said that Riau administration and Pertamina would have a 50 percent stake respectively in a joint venture which will operate the oil block. Riau will be represented by PT Bumi Siak Riau Pusako in the joint venture.
Located in the Riau province, the CPP block currently produces some 50,000-barrel per day of oil.
To maintain the production level, some US$48 million in funds were needed in the first year. (*)