High-level meeting planned to discuss the fate of CPP oil block

A high level meeting involving President Abdurrahman Wahid, Vice President Megawati Sukarnoputri, Minister of Energy and Mineral Resources Purnomo Yusgiantoro, Riau Governor and the president of state owned oil company Pertamina will be held soon to discuss the transfer of the management of the Coastal Plain Pekanbaru (CPP) oil block from PT Caltex Pacific Indonesia (CPP), Riau Pos reported on Thursday.

The head of the special team for the preparation of the transfer of the CPP oil block to Riau province, Urai Nazim said in Pekanbaru on Wednesday that the meeting would be held to find a breakthrough for the transfer of the oil block to the provincial administration.

He said that Minister of Home Affairs and Regional Autonomy had sent an invitation letter to the President to attend the meeting.

The government has agreed to allow Riau to take over the operation of the oil block once the current contract, which is now held by Caltex ended next year. However, the ministry of energy and mineral resources will not issue its final approval until the provincial administration finds its partners in managing the oil block.

The province has agreed to follow the government's advice to involve Pertamina and Caltex as its partners in operating the CPP oil block. But negotiations on the share ownership in a company, which will manage the oil block, have failed, as all parties demanded a higher stake.

The Riau province insists to get a 70 percent stake and gives the other 30 percent to Pertamina and Caltex. (*)