Riau administration has no capability in managing CPP

The Riau administration has not capability in managing the Coastal Plains Pekanbaru oil field, according to Riau University economist Viator Butar-Butar.

Viator urged the administration not to be involved in the management of the CPP, but should only negotiate for a stake with the central government.

The Riau administration has earlier demanded a right to manage the CPP after Caltex Pacific Indonesia (CPI) ended its contract in 2001.

The government has insisted that the CPP should be controlled by the state oil and gas firm Pertamina in any future contract either with Caltex or other contractors. (*)