Riau again demand full control over CPP

The governor of Riau province Saleh Djasit has again called on the central government to hand over the sole rights to operate and manage the Coastal Plains Pekanbaru (CPP) oil block when the contracts now held by PT Caltex Pacific Indonesia (CPI) ended in August, next year.

The governor said that the rights to operate and manage the oil fields should not be returned to Pertamina but instead to the Riau province because the local people are the rightful owner of all natural resources in the province including the CPI oil block.

"We determine to take over the rights to operate and manage the oil block even though the central government still prefers Pertamina to be in charge of the oil block," he told in a meeting with assistants of Coordinating Minister for Economy and Finance.

According to the existing regulation, the full authority to manage the country's oil and gas resources is held by Pertamina as, not the provincial administration.

The contract of the CPP oil block, which is currently held by PT Caltex, will expire in August next year.

The government has asked Pertamina and Caltex to form a joint venture to jointly operate the oil block but negotiations over the ownership of the oil block have been stalled, as both parties demand a majority stake.

The House has asked the government to involve Riau province in the joint venture in a bid to accommodate the local people's demand for more control in the province's wealth. (*)