Kondur ready to help Riau in operating CPP

Kondur Petroleum, one of oil mining companies operating in the country, has expressed interest to cooperating with Riau province in operating the Coastal Plain Pekanbaru (CPP) oil block in the province, Riau Pos reported on Friday.

Chief Executive Officer and President of the company Rennier A.R. Latrif expressed the company's interest in a meeting with the chairman of the province's legislative council, Chaidir, and other senior legislators on Wednesday.

He said that Kondur, which is wholly owned by Indonesian shareholders, had been successfully operating an old oil block in the Malaka Strait, near the CPP oil block although most of its operations were supported by local engineers. He added that if the company is given the chance, it would be able to raise the current production level at CPP.

A number of local companies including Medco Corporation and Bakrie Group have expressed interest to join the Riau province but they later withdrew their statement.

President Abdurrahman Wahid has agreed with the Riau province's demand to operate the oil block. But many parties have expressed their doubts over the capability of the province both in term of technology and financing in operating the oil block.

The CPP oil block is being operated by PT Caltex Petroleum Indonesia. But the contract will expire in August, next year. The government previously asked Pertamina and Caltex to take over and operate the oil block once the current contract is terminated. (*)