Riau governor asked to take over management of CPP oil block

Local community leaders and a number of local legislators have asked Governor of Riau Saleh Djasit to take over the operation of the Coastal Plain Pekanbaru (CPP) oil block in order to end the conflict within the management of PT Bumi Siak Pusako, the operator of the oil block, Kompas reported on Friday.

"If the governor could not immediately settle the internal conflict within the management of PT Bumi Siak, the impact for the local province?s intention to control more oil resources in future will be quite negative. The conflict shows that the locals are not capable," Basrizal Kota, a publisher of a local newspaper.

The internal conflict within the management of Bumi Siak occurred after Regent of Siak regency Arwin A.S. dismissed Azaly Djohan from the company?s board of directors. Azaly however protested his dismissal and refused to go.

Bumi Siak and Pertamina jointly took over the operation of CPP oil block last year after the production sharing contract held by PT Caltex Pacific Indonesia (CPI) ended. The local government through other companies also plan to take over more oil blocks from the current operators in their bids to get more control to the local oil resources. (*)