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PetroChina 'keen on CPP slice'
PetroChina wants to develop part of the Coastal Plain Pekanbaru (CPP) Block in Sumatra, Indonesian Energy Minister Purnomo Yusgiantoro said today.
Production at the onshore CPP Block, jointly owned by state oil player Pertamina and Riau province's PT Bumi Siak Pusako, has dropped to around 20,000 barrels per day of crude oil, from 60,000 bpd six years ago.
"The government is disappointed with the development of the CPP Block as oil output in declining. PetroChina has shown it is interested to enter into the CPP block," Purnomo told Reuters.
"If PetroChina enters in CPP Block, there will be business to business deal," he said, indicating that PetroChina would have to buy a stake from an existing shareholder.
Purnomo said there are still potential oil reserves in the CPP Block, but that developing these areas would require sophisticated technology and investment.
A PetroChina official declined to comment.
Pertamina and Riau province took over the block from Caltex Pasific Indonesia after its contract exprired in 2002.
Caltex, owned by Chevron , produced 60,000 bpd from the block before it was taken over.
Friday, 23 November, 2007, 12:21 GMT | last updated: Friday, 23 November, 2007, 12:21 GMT
