Pertamina Agrees to Joint Venture for CPP Management
Monday, 26 February, 2007 | 13:52 WIB

Tempo Interactive, Jakarta: PT Pertamina has stated its willingness to set up a joint venture company to manage the Coastal Plain Pekanbaru (CPP) oil block in Riau.

So far there has not been any official discussion between PT Bumi Siak Pusako, a Regional-Owned Enterprise in Siak, and PT Pertamina Eksporasi Produksi (EP), a subsidiary of Pertamina.

Sukusen Soemarinda, Pertamina's Upstream Director, said that the setting of a joint venture company was in line with the 2001 agreement.

“We're willing to set up a joint venture to operate the CPP Block and it's no problem for us,” Sukusen told Tempo yesterday (25/2).

According to him, the setting up of the joint venture was in order to determine the operator in the oil field that was formerly owned by Chevron Pacific Indonesia.

Sukusen explained that in spite of the joint venture, the working interest at CPP oil field will remain.

“Pertamina's and Bumi Siak Pusako will still own 50 percent each,” he said.

Sukusen explained that the change will only apply to ownership of the joint venture.

Based on Tempo's information, Siak demanded the setting up of a joint venture between Bumi Siak Pusaki and Pertamina EP.

Based on the agreement signed on December 28, 2001, a joint venture will be founded in two years’ time at the earliest, to manage the CPP Block.

The agreement says that in the joint venture, Bumi Siak Pusako will own between 70 and 55 percent of the shares and the remainders by Pertamina.

The agreement was signed by Pertamina's former Upstream Deputy Director, Eteng A. Salam, and Azaly Djohan, representing the Siak government.

Currently, the CPP Block management is carried out by a joint operation agency of Bumi Siak Pusaki and Pertamina EP with 50 percent ownership each.

Ali Nur Yasin
_________________________ Indonesian Business and Investment News Aggregator