Caltex to invest $6 million to improve CPP output

After getting a one-year extension for its contract for Coastal Plain Pekanbaru (CPP) oil block, PT Caltex Pacific Indonesia will invest US$6 million to drill eight new wells to maintain oil output from the CPP block, Koran Tempo daily reported on Thursday.

Caltex senior vice president Wahyudin Budiana said in an interview with the daily that oil output from the CPP block had been decreasing, and therefore, it needed new investment to maintain its production level.

"If there is no new investment in CPP, oil output will drop drastically. Even now, the output has been decreasing," Wahyudin said.

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

During the one-year extension period, Wayudin said, Caltex would drill a total of eight wells, of which six processing well and two exploration wells.

Actually, he said, Caltex had committed to drill 16 new wells, however, as its proposal to extend the contract to 18 months was slashed to one year, the company would drill up to 8 wells.

In addition, Wahyudin said, the company would continue to meets its commitment, as agreed with the government, to empowering local people through various community development programs. (*)