Riau asks Jakarta to delay transfer of CPP oil block to new operator

Riau Governor Saleh Djasit has asked the Ministry of Energy and Mineral Resources and state owned oil and gas company Pertamina to delay the transfer of Coastal Plain Pekanbaru (CPP) oil block to new operator, Bisnis Indonesia reported on Thursday.

In his letter dated July 22, 2002, the governor wanted the signing of the production sharing contract to a consortium of Pertamina and Bumi Siak to be delayed until the problem related to the ownership of Bumi Siak was settled.

Bumi Siak is jointly owned by the provincial administration of Riau and the province?s four regencies. However, the problem related to the percentage of shares that must be owned by each shareholders has not been resolved.

The CPP oil block is part of Caltex Pacific Indonesia?s oil concession areas in Riau. The oil block will, however, be transferred to a consortium of Pertamina and Bumi Siak Pusako in August (this month). At present, the oil block produces 40,000 barrels per day, far lower than 70,000 barrels per day in the previous years.

Ramlan Comel, a director of Bumi Siak, however, deplored the governor?s move, saying that the problem related to the ownership of the company had nothing to do with the transfer of the CPP operation. (*)