Govt refuses to re-tender West Kampar oil block

The government has refused to re-tender the West Kampar oil block in Riau as demanded by Geram, a non-governmental organization based in the province, Investor Daily reported on Thursday.

“The appointment of PT Sumatera Persada Energi to develop the West Kampar oil block has been final and would not be reviewed,” Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Wednesday.

He said that the director general of oil and gas had consulted with the provincial administration of Riau before deciding to name PT Sumatera Persada as the winner of the tender to develop the West Kampar oil block. “The most important thing is that the local government will have the rights to own 10 percent interest in the oil block,” Purnomo said.

The government’s decision to name PT Sumatera Persada as the winner of the tender to develop the West Kampar oil block has been widely criticized in Riau province, which had its own candidates to operate the oil block. The strongest protest came from Geram, a local non-government organization, which accused the appointment of PT Sumatera Persada as unfair.

Geram then urges the government to annul the decision to name PT Sumatera Persada, believed to be part of Bakrie Group which is controlled by Chief Economic Minister Aburizal Bakrie. (*)