Establishment of PT Riau Petroleum incites protests
Tuesday, July 31 2001 - 02:46 AM WIB
The students said that the establishment of the company, which will take over the operation and management of PT Caltex Pacific Indonesia (CPI) would not only waste the money but also the time.
?The (local) government has made several actions and efforts to take over the CPP oil block but no results have been made. So the establishment of the company will only waste the money,? one of the protesters said.
The students said they feared the local government?s latest move would also fail t bring up the people?s aspiration regarding the oil block.
The provincial administration of Riau has recently formed a negotiation team to take over the management and operation of the CPP oil block from the current contractor PT Caltex Pacific Indonesia.
The negotiation team would then form an oil company which would later represent the local administration in future negotiations with the central government over the take over of the oil block.
According to him the team members will be appointed as the management team of the oil company which would be named PT Riau Petroleum.
According to Riau Pos, the management team will include former cabinet minister Syarwan Hamid as chief comissioner, rector of Riau University Muchtar Ahmad and secretary of the local admistration as members of the commissioner board. T
The executive board will be led by T Amir Sulaiman as the president director, Amir Hasan as finance director, Tang Anthony as technical director and Azlaini as director for general affairs and human resource.
The Ministry of Energy and Mineral Resources has decided to transfer the management and the operation of the CPP oil block to a joint venture between Pertamina and locally-owned company after the current contract currently held by Caltex ends in August this year.
Pertamina will be given 90 percent stake in the planned joint venture, while the local company the other 10 percent.
The Riau administration rejects the offer arguing that the 10 percent ownership for the local firm will be too small. (*)