China Petroleum involvement in CPP questioned

Priyo Budisantoso, a member of the House of Representatives (DPR) again questioned the involvement of China Petroleum in the future operation of the Coastal Plan Pekanbaru (CPP) oil block in Riau province.

"I will question China Petroleum's involvement in CPP oil block with Minister of Mines and Eenergy," he told Republika. He also said that he would also seek a clarification from the minister over a report that the Bakrie Group had helped the Chinese oil company to get access to CPP operation.

According to earlier newspaper reports, the recent decision made by President Abdurrahman wahid to allow the Riau provincial administration to take over and manage the CPP oil block was made due to a strong lobby from China Petroleum.

Reports said that China Petroleum and several local companies including the Bakrie Group's oil division Kondur Petroleum would operate the oil block in cooperation with the local government.

The government initially asked state owned Pertamina and Caltex Pacific Indonesia to operate the oil block after the existing contract, now held by Caltex, expired in August next year. But the plan was immediately cancelled after the President said that the future operation of the oil block should be given to the local government.

The provincial administration rejected the involvement of both Pertamina and Caltex in operating the oil block. It will, instead, seek partners of its own choices. (*)