Riau asked to unveil its partner in CPP operation
Wednesday, May 17 2000 - 04:00 AM WIB
The Riau provincial administration should first disclose its partners in operating the Coastal Plain Pekanbaru (CPP) oil block before it receives a final approval from the central government, Astaga.com reported on Wednesday.
"We want to know names of potential partners and how the province will appoint them...through a direct appointment or a competitive bidding," Director General of Oil and Gas Sudibyo said following a meeting with Minister of Mines and Energy.
In addition, the provincial administration should also disclose the background of the partners which will cooperated the province in operating the oil block when the current contract, now being held by PT Caltex Pacific Indonesia (CPP).
President Abdurrhman Wahid has agreed with the Riau province's demand to operate the oil block. But many parties have expressed their doubts over the capability of the province both in term of technology and financing in operating the oil block.
Meanwhile, the spokesman for the Riau province, Ruskin Har, said in Pekanbaru on Tuesday that the province has appointed PT Sarana Pembangunan, a company owned by the local administration, to lead a consortium, which will operate the oil block.
He told Republika daily that the consortium, which will comprise several oil mining companies will become the partner of the Riau provincial administration in operating the CPP oil block.
He said that a number of national and foreign oil companies have expressed interest to become part of the consortium but the local government had yet to name which companies, which will be appointed.
"But for sure, the provincial administration will not involve either Caltex or Pertamina. Because if the two companies are involved the role of the Riau province as the operator will be unclear," he said.
Many local intellectuals, however, do not agree with the Riau province's determination to exclude Pertamina or Caltex.
Viator Butar-Butar, an economist at the University of Riau, said that without the help of the two companies, the Riau province's capability in taking over the CPP management is at stake because it lacks both technology, infrastructure or financing.
"The solution is that PT Caltex should be involved because the company has the infrastructure, expertise and financing," he told Berpolitik.Com. (*)