Caltex ready to help Riau operate CPP block

Oil company PT Caltex Pacific Indonesia, a joint venture of American oil firms Chveron and Texaco, said it was ready to help the Riau provincial administration operate the Coastal Plains Pekanbaru (CPP) block should the latter take over the block in the future, The Jakarta Post reported.

Company spokesman Poedyo said Caltex did not mind the provincial administration taking over the control of the block after Caltex's 30-year production sharing contract on the block expires in August, 2001.

"Caltex will be ready to operate the block as it is doing now, if it is trusted (by the provincial administration)," Poedyo said.

The statement came amid the growing pressure placed by the government and the House of Representatives on Caltex to allow state oil and gas company Pertamina to hold the majority shares in the oil block after Caltex's contract expires. Caltex wants to have a 50-percent shares in the oil block. (*)