Riau denies demand full control of CPP oil block
Wednesday, March 22 2000 - 02:30 AM WIB
Riau governor Saleh Djasid has denied media reports that the provincial administration has demanded to gain a full ownership in the Coastal Plain Pekanbaru (CPP) oil block.
"We don't demand for 100 percent ownership. The most important thing is that we are given part of the stake," he said reporters at a sideline of a hearing between several provincial governors with members of the House of Representatives in Jakarta on Tuesday.
Saleh said that he was sure the provincial administration would face no problem to operate the oil block even tough many parties doubted its financial and technology capability.
"If we are given the chance, we will cooperate with other parties," he said.
Riau Vice Governor Rustam S. Abbrus said last week that the province was deserved to take over a full ownership in the oil block, which is currently operated by PT Caltex Pacific Indonesia.
The contract of the CPP oil block, which is currently held by PT Caltex, will expire in August next year.
The government has asked Pertamina and Caltex to form a joint venture to jointly operate the oil block but negotiations over the ownership of the oil block have been stalled, as both parties demand a majority stake.
The House has asked the government to involve Riau province in the joint venture in a bid to accommodate the local people's demand for more control in the province's wealth. (*)