Riau administration offers PSC ratio of 70 to 30 for CPP block

A Riau representative, Djoharman Arifin, has come up with an offer for the production-sharing ratio of 70 percent to 30 percent for incomes raised from the CPP oil field in Riau.

Djoharman, also deputy speaker of the Riau legislative council, said that the 70 to 30 percent ratio should also be applied for the ownership of the CPP block.

However, Djoharman expressed his pessimism if his proposal would be accepted by Pertamina. "They wanted a ratio of 51 percent to 49 percent for Pertamina."

CPP field, producing around 70,000 barrels of crude per day, is currently operated by Caltex Pacific Indonesia. The production-sharing contract for CPP will expire on August 2001, and the Riau administration has insisted to control the oil field, by involving Caltex and Pertamina as operators. (*)