Riau agrees to accept 10 percent interest in CPP
Wednesday, February 21 2001 - 04:00 AM WIB
The oil and gas-rich Riau province would accept the central government offer for a 10 percent stake in a joint venture company, which would operate the Coastal Plain Pekanbaru (CPP) oil field, Governor of Riau Saleh Djasit said on Tuesday.
"I will accept what the central government will decide," Saleh told reporters.
Riau had long demanded for a 70 percent stake in the joint venture company, but the central government insisted that it would only give Riau 10 percent interest with the remaining 90 percent to be controlled by the state-owned oil and gas firm Pertamina.
The CPP oil block is currently managed by Caltex Pacific Indonesia, which would end its contract with the government in August this year.
As a compensation, the central government would allow Riau to also put its candidates in the board of directors of the joint venture company, and to also allow the Riau administration to sell its own crude oil from the output split.
It is not year clear, however, whether the people of Riau will accept this offer. (Godang S.)