Riau insists to have majority stake in CPP oil block

Riau governor Saleh Djasit said that the provincial administration would continue demanding majority stake in the Coastal Plain Pekanbaru (CPP) oil block although the government has decided to give only 20 percent to the province, Riau Pos reported on Thursday.

"The willingness to have a majority stake in the oil block does not come from the local authority but based from the aspiration of the people," the governor was quoted as saying by the daily.

The governor said that Riau's persistence to obtain majority stake in a joint venture that will run the oil block was maintained during a recent coordinating meeting at the office of Vice President Megawati Sukarnoputri.

In the meeting, which discussed the future operation of CPP, the Riau representatives continued demanding a majority stake, Saleh added.

The government took over last month the talks related to the transfer of the operation of the CPP oil block after negotiations between the provincial administration of Riau and Pertamina failed to settle their difference over the ownership of the oil block.

The negotiations failed as both Pertamina and the local administration demanded majority stake in the joint venture that will takeover the operation of the CPP from Caltex when the current contract ends in August next year. (*)