Riau insists to fully take over CPP block

The Riau provincial administration is determined to fully take over the operation of the Coastal Plains Pekanbaru (CPP) block in Riau starting August this year when the production-sharing contract on the block held by American oil and gas company PT Caltex Pacific Indonesia (CPI) expires.

Riau governor Saleh Djasit voiced what he called "the aspiration of the Riau people" during the meeting with Vice President Megawati Sukarnoputri on Tuesday, according to director general of oil and gas at the ministry of energy and mineral resources Rachmat Sudibyo.

"The Riau people demands the block be wholly operated by Riau," Rachmat told Petromindo.Com.

The government has yet to decide on the matter, Rachmat added.

Earlier, President Abdurrahman Wahid, in a meeting with Saleh, said the central government wanted the block to be operated by a joint venture between the province and state oil and gas Pertamina with the state company having 80 percent shares and Riau the remaining 20 percent.

The President's proposal had angered many parties in Riau.

As a matter of fact, the province initially agreed to operate the block in a joint venture with Pertamina on the condition that it holds 70 percent of the joint venture.

CPP block now produce about 60,000 barrels per day.

CPI, the country's largest oil producer with the oil output of more than 700,000 bpd, is owned by American energy firms Chevron and Texaco. (Epin)