Riau Legislative Council establishes its own team to demand CPP block

The Riau Legislative Council has formed its own team to fight for the province's rights over the the Coastal Plan Pekanbaru (CPP) oil field, following the failure of similar team established by the Riau administration to demand larger stake at the oil field, according to an Antara report.

Riau council speaker Chaidir told the protesting students in Pekanbaru that the establishment of the team was aimed to support the works of the previous team established by the Riau administration.

Chaidir said that the new team would try to increase the bargaining power of Riau and thus secure 70 percent stake for Riau at the CPP block, rather than 10 percent stake as offered by the central government.

CPP field, producing around 70,000 barrels of crude per day, is currently operated by Caltex Pacifc Indonesia. The production sharing contract for CPP would have initially expired in August, 2001, but as the negotiation between the central government, Riau administration and Pertamina was still going on, the contract with Caltex has been extended for one year until August, 2002.

The Riau administration has insisted to control the oil field, by involving Caltex and Pertamina as operators, but the government maintained that the central government should be the one to control the oil field.

In its last offer, announced on Dec. 28, 2000, the central government offered 10 percent stake for Riau at CPP block, with the central government giving freedom to Riau to sell its own portion of crude oil and to own two more smaller oil fields in Riau province.

But Chaidir said that it's better to wait for another year, while trying to get larger stake than what the government had offered. (*)