Govt expects to settle CPP problem in August

The government will give access to the Riau administration into the confidential data on the Coastal Plains Pekanbaru (CPP) oil field block to allow Riau to make its acquisition proposal, according to the director general of oil and gas Rachmat Sudibyo.

Rachmat said that the data was confidential and was only in the hands of Caltex and the state owned oil and gas firm Pertamina.

Rachmat was quoted by the Pekanbaru-based Riau Post daily as saying that the government wanted to see a final option for the CPP block to be already decided by August.

"We want a decision to be already taken by August so that there's one year for the preparation of the transfer of management," he said.

Caltex will end its control over the CPP block in August 2001 according to the existing contract. The Riau administration has demanded for the control and management of the oil field.

But Rachmat said that the fate of the CPP block would be decided together with the House of Representatives, and the final say would be made by President Abdurrahman Wahid.

The government has four options for the CPP block including a possibility Caltex and Pertamina to maintain their role in the oil field. But the Riau administration has said that it wanted an option in which it decides the would-be partner for operation the CPP block. (*)