Pertamina asked to take over CPP

Some members of the House of Representatives have again asked the government through state-owned oil company Pertamina to take over the majority stake in PT Coastal Plain Pekanbaru, which is now controlled by PT Caltex Pacific Indonesia (CPI).

According to the House members, if Pertamina manages to take over the majority stake in the oil block, the company will be able to raise at least US$512 million from the oil block for the state coffer a year.

Ramson Siagian, the chief of the House commission VIII said in Jakarta last week, said taking over the ownership of the CPP oil block was not something difficult for the government and he was quite sure Pertamina would be able to produce more than Caltex did given its long experience in the oil exploration and production activities.

Similar calls have been also raised by the House members in the past but there is no decision yet how to deal with the CPP oil block. Last week, the legislative body of Riau province made a similar maneuver by approving the local administration's proposal to take over the management of the CPP oil block whose contract will expire next year.(*)