Gus Dur okays options in managing CPPs
Tuesday, May 9 2000 - 02:00 AM WIB
President Abdurrahaman Wahid has approved the four options proposed by Pertamina, Caltex Pasific Indonesia and Riau provincial government in operating the Coastal Plain Pekanbaru (CPP) oil block, DetikCom reported on Tuesday.
Minister of Mines and Energy Susilo Bambang Yudhoyono said in Jakarta on Monday the President, more popularly called Gus Dur, had approved all of the four options and asked all parties involved to take the alternative which could accommodate the people's interest.
"We hope we will be able to decide this week which alternatives which will be taken," the minister said following his meeting with the President.
Pertamina, which holds exclusive rights in managing the country's oil and gas resources, initially proposed three options to Riau after Gus Dur allowed the province to take part in operating the CPP oil block once the current contract expires in August, next year.
The first option is to establish a joint venture between three parties, the second is a joint venture between Riau and Pertamina, and the third between Riau and Caltex.
But the three options were all turned down by the Riau province and the province instead proposed the fourth option to allow it to choose its own partner.
Meanwhile local oil company Medco Energy Corporation has expressed interest joining the tender, which will be opened by the Riau government in selecting its partner in operating the oil block.
Hilmi Panigoro, the chief executive officer of the company, said that inviting a tender would be the best way for the province in selecting its partners because such an open bidding would ensure transparency, Bisnis Indonesia reported on Tuesday.
Medco would be supported by international financial institutions in bidding the project, he said, citing that Credit Suisse had expressed its readiness to provide Medco a financial support in managing the oil block.
Riau governor said last week that the province might take the fourth option, which frees the province to choose its partners in operating the oil block, now operated by Caltex.
The governor promised to hold an open bidding in selecting the partners. (*)