CPP output drops to 55,000 barrels per day
Tuesday, October 17 2000 - 04:00 AM WIB
State oil and gas company Pertamina said on Tuesday the oil output of the Coastal Plains Pekanbaru (CPP) block owned by American oil and gas company PT Caltex Pacific Indonesia in Riau had dropped to 55,000 barrels per day (bpd) from 70,000 bpd last year.
Spokesman of Pertamina's foreign contractors management body (BPPKA) Sidick Nitikusuma said the drop in the output was caused by troubles caused by the villagers living around the oil block and the decrease in the investment spent by the company following uncertainties over the future ownership of the block.
Caltex's contract on the block expires in September 2001 and the government has not yet decided whether to allow the company to continue operating the block. Pertamina and the Riau provincial administration are interested in taking over the block after Caltex's contract expires.
Sidick said troubles caused by the locals on Caltex's operation had forced the company to cut its output by between 15,000 and 20,000 bpd, which causes the company to lose US$4 million in potential revenue per day. (Lia KS)