Business concept for CPP being prepared: Riau

The provincial administration of Riau has acknowledged that the proposal submitted recently to the Ministry of Mines and Energy related to the take over the Coastal Plain Pekanbaru (CPP) oil block by the province has yet to contain the business aspect of the future operation of the oil block.

The Riau administration's spokesman, Ruskin, said on Tuesday that the business concept of the future operation of the oil block would follow but the delay would not pose any problem to the province's efforts to take over the oil block.

"The business concept on the future operation of the oil block is being prepared," he told Riau Pos. "The delay will not deter the province from taking over the oil block" he added.

The province has been given until August, this year to submit its proposal in taking over the oil block when the current contract, now held by PT Caltex Pacific Indonesia (CPI) ended in August next year.

The province's governor submitted the proposal last week but Director General for Oil and Gas Rachmat Sudibyo said that the proposal only contained the general aspect of the future operation of the oil block.

He said that the province should add the proposal with a comprehensive business concept especially related to funding and partnership in the operation of the oil block.

Ruskin said that it would take time for the province to prepare the business concept because it will deal with details of every business aspects of the oil field. "But Minister of Mines and Energy has assured us that we will be allowed to submit the business concept after the deadline," he added. (*)