CHEVRON TO RELINQUISH MANAGEMENT OF LANGGAK OIL FIELD

Pekanbaru, Indonesia, Nov 28 (ANTARA) - PT Chevron Pacific Indonesia (CPI) will have to relinquish the management of Langgak Block oil field upon the expiry of its contract with the central government on January 19, 2009, CPI director Suwito Anggoro said.

PT Riau Petroleum, a state-owned company, would take over the Langgak block, he said here Friday.

Suwito said that CPI is ready to give a training to those who are taking over the management of Langgak block. The management of the Langgak field is a central government institution, while CPI is only carrying out the law.

He said that if the management is correctly carried out, the Langgak block can produce 400-500 barrels of oil per day.

"Therefore, we would give a field training to the new management, to enable the Langgak block to operate optimally," he said.

Meanwhile, the energy and mineral resources ministry is processing Riau province's demand for PT Riau Petroleum to manage the Langgak Block.

The ministry said that the Riau government has sent a letter about the Langgak block oil field being managed by PT Riau Petroleum.

He said that the ministry still has to make an economic calculation of the transfer from CPI to the state company.