Caltex's statement infuriates Riau councilors

Riau councilors insisted on Friday that the provincial administration should have some shares in the Coastal Plains Pekanbaru (CPP) oil block, blasting PT Caltex Pacific Indonesia for giving no support to the idea, Riau Post reported.

The councilors made the statement following a hearing with the House of Representatives' Commission VIII for mines and energy with Caltex on Wednesday.

During the hearing, Caltex's president Humayunbosha said he did not favor Riau administration's intention to own shares in the CPP block because oil business was risky and there was a possibility that the province did not get the return on its investment.

"Humayunbosha's statement that oil business is highly risky is nonsense," Abdul Karim Salim, head of the Riau council's Commission IV, said.

Kadir said Humayunbosha's statement reflected Caltex's lack of care for the Riau people.

He said whoever was going to develop the oil block after Caltex's current contract expires in 2001, they must allow the Riau provincial administration to have some shares in the block.

The government has asked state oil and gas company Pertamina to set up a joint venture with Caltex to develop the CPP block after the latter's contract on the block expires, but negotiations on the share composition has not yet competed. (*)