Pertamina wants majority shares in CPP block
Thursday, November 30 2000 - 11:00 AM WIB
Mines and Energy Minister Purnomo Yusgiantoro said Thursday he has suggested to President Abdurrahman Wahid that the state oil company, Pertamina, be given the majority shares in the Coastal Plains Pekanbaru (CPP) oil block in Riau, Antara news agency reported.
The CPP block is under contract with Caltex Pacific Indonesia (CPI). The contract expires in August next year.
Speaking before attending a cabinet meeting at the Bina Graha presidential office here, Yusgiantoro pointed out that he has consulted the matter to Coordinating Minister for Economic Affairs, Rizal Ramli; Coordinating Minister for Political, Social and Security Affairs, Susilo Bambang Yudhoyono; and Home Affairs Minister, Surjadi Soedirdja.
The tug-of-war between Pertamina and the Riau provincial government to wrest the majority shares of the CPP block has become complicated, prompting the ministers to agree to refer the matter to the president.
Negotiations between Pertamina and the Riau provincial government have been deadlocked, as Riau demands a 70 percent share, while Pertamina wants 51 percent. (*)