Purnomo welcomes East Kalimantan?s softer stance on KPC
Monday, December 31 2001 - 02:12 AM WIB
Purnomo said Sunday that this was a very positive move taken by the provincial administration.
Following a meeting with the directorate general of energy and mineral resources late last week, East Kalimantan top officials told reporters that the administration was willing to drop its lawsuit against the government and KPC, and would honor a negotiation approach.
East Kalimantan had filed a legal suit against the government, KPC management and shareholders over delays in the divestment of a 51 percent stake in KPC.
The divestment program was supposed to be completed before the end of this year, but the government delayed it into March 2002 due to differences over the share price between KPC and the East Kalimantan administration, which gets the first priority to purchase the shares.
?From now on, we?ll entrust everything to the central government. We?ll accept whatever price would emerge from negotiation,? Syaiful Teteng, a senior official at East Kalimantan provincial administration told Petromindo.com after an East Kalimantan delegation met with director general of energy and mineral resources Wimpy S. Tjetjep on Friday.
Teteng said he expected KPC divestment program could be completed in late January next year, as all parties involved in the negotiation including KPC were now open to negotiation and willing to communicate.
Meanwhile Teteng said the source of fund to purchase 51 percent of KPC shares was coming from PT Intan, a local firm linked with conglomerate Salim Group. However, he said PT Intan was not the only source of funding.
?We already secure commitment from several investors, including the regency of East Kutai, where KPC is located, which also has expressed interest in participating,? said Teteng.