Riau determined to go ahead with CPP plan
Saturday, May 13 2000 - 04:00 AM WIB
Riau governor Saleh Djasit said that the province is determined to go ahead with its plan to operate the Coastal Plain Pekanbaru (CPP) oil block even though it has to face tough opposition from many "parties", Riau Pos reported from Pekanbaru on Saturday.
"We will go ahead with the plan despite the opposition. About how we will do it, it is a technical matter that we don't need to argue about it," the governor told reporters during his visit at the province's several villages.
Asked to comment on the statement made by the chairman of the Caltex Pasific Indonesia Haroen Al Rasjid, the governor said that he would not really matter with the impact of the province's operation of the oil block to other provinces.
"If it creates a good precedence, so what's wrong with it," he said.
Haroen said recently that the takeover of the CPP oil block by the province would create a bad precedence to the country's oil and gas industry and it could discourage foreign investors from entering the oil production sector.
Saleh stressed that the takeover of the oil block would not break the existing oil and gas law as the province would only take the place of the operator, in this case Caltex, while Pertamina would remain the majority owner of the oil block as stipulated in the law.
According to the law, all oil resources should be operated under a production-sharing contract with Pertamina. Pertamina will receive 85 percent of the production, while its partner gets the other 15 percent.
Caltex currently operates the CPP and the contract will expire next year. (*)