Riau insists to have a majority stake in CPP oil block
Wednesday, December 26 2001 - 02:28 AM WIB
Riau Governor Saleh Djasit said in Pekanbaru late last week that Riau insisted to have at least 55 percent stake in the joint venture, which would be jointly established by the provincial administration and Pertamina.
The governor said that the technical team which has been appointed to prepare the transfer of the operation and management of the CPP oil block had worked as expected, and he hoped that the joint venture would be able to take over the oil bloc in August next year as scheduled.
Azaly Johan, the head of the technical team, said that the team was still discussing the establishment of the joint venture between Riau and Pertamina to operate their CPP oil block and their respective ownership.
?We will continue to insist to have at least 55 percent stake in the joint venture and we hope the government will accept it,? he said, adding that the negotiations over the ownership of the joint venture would be conducted by Pertamina and representatives of a company owned by the Siak regency.
He said that Riau would be represented by Siak regency because 80 percent of the CPP oil blocks are located in the regency.
Caltex?s contract to operate the CPP oil block should have been ended in August this year but it was extended for a year to give Riau and Pertamina more time to prepare for the takeover of the oil block. (*)