Riau Governor to meet Vice President to discuss CPP oil block

Riau governor Saleh Djasit and the chairman of the local legislative council Chaidir will meet Vice President Megawati Soekarnoputeri Monday (today) to discuss the future of the Coastal Plains Pekanbaru (CPP) oil block in the province, Riau Pos reported.

The province's representative in Jakarta Tengku Razmara said on Saturday that the meeting would be held at the Vice President's office at around one o'clock in the afternoon. But he refused to disclose the issues to be raised during the meeting.

Riau and state owned oil and gas company Pertamina have agreed to establish a joint venture to operate the oil block after the current contract now held by Caltex Pacific Indonesia expires in August, this year. But negotiations over the establishment of the joint venture failed as both demand majority stakes in the company.

The government than stepped in and took over all issues related to the future of the oil block and decided that the province would be given only about 20 percent stake in the joint venture. Sources said that the presidential decree on the share allocation is being prepared.

In his recent letter to President Abdurahman Wahid, the chairman of the province's legislative council Chaidir said that giving the province the position as the operator of the oil field would be the best solution that could end the dispute over the future of the oil field.

"Giving the province the chance to act as the operator of CPP is much more realistic rather than closing the oil field," he said in his letter.

Riau students early this month went to street, demanding the closure of the oil block, if the central government allocates only 20 percent interest of the CPP to the province. The students said that the province should be given the opportunity to operate the oil block. (*)