Competition to win first position at Riau's PD Migas escalates

Competition to win the top position at PD Migas, an oil company recently established by the provincial administration of Riau, is escalating, with many candidates making a number of political maneuvers to grasp the place.

Muchtar Ahmad, the rector of the University of Riau (Unri), regretted the maneuvering saying such an unhealthy competition would not only be unproductive but it could also taint the mission behind the establishment of the company.

"Many people are interested in the fat position at the new company and no wonder if some pf the candidates have made some maneuverings to bring them to the top position," he told Riau Pos on Saturday.

According to Muchtar, known as a true reformist in the province, the local government should prevent such unhealthy competition from taking place by setting up a clear guidance and qualification for those interested to lead the newly established oil and gas company.

Although the selection should be carried transparently, the provincial administration should give the first priority to the locals to become the first president of the new company. " Many Riau people are qualified enough to lead the company and they should be given the first chance," he added.

The Riau government recently established a new company to take over the management of the oil block when the current contract expired in August next year. The new company called PD Migas will represent the local government in managing and operating the Coastal Plains Pekanbaru (CPP) oil field, which is now operated by PT Caltex Pacific Petroleum (CPI).

The government initially decided to appoint a joint venture between Pertamina and Caltex to take over the operation and the management of the oil field. But the plan was immediately cancelled after President Abdurrahman Wahid early this year decided the province as the most rightful institution to operate the oil block, a move widely seen as a political concession to ease the independence movement in the province.

The province was then offered three options to manage the oil field; operating the oil block under a join venture with Pertamina or with Caltex, or with both of the oil giants. But Riau rejected the offer and demanded to manage the CPP oil field with its own partner.

The provincial administration of Riau later said that it was still considering mines and energy minister's offer to cooperate with Pertamina in operating the oil block. (*)