Riau legislators summon Caltex and Pertamina

The Legislative Council of Riau province has summoned executives of state owned oil and company Pertamina and PT Caltex Pacific Indonesia to ask them about their actual production levels and also the possible establishment of a oil refinery in the province, Riau Pos reported on Wednesday.

The chief of the council's Commission III, J, Nadeak, said in Pekanbaru on Tuesday that the two giant oil companies were asked to hold a hearing with the council's members Wednesday (today) to explain their actual production levels.

Nadeak said that the commission would ask the two oil giants to explain their actual oil production level and the marketing of their crude oil. "We also want to know the amount of the royalties and tax paid by the two companies," he said.

According to Nadeak, such information is quite needed for the local legislative council in calculating how much the province will receive tax and royalties from the operation of the two oil companies when the autonomy law become effective next year.

Under the new autonomy law, the local administration will receive 15 percent of oil tax and royalties paid by an oil company to the government and 65 percent from tax and royalties paid for gas production.

Nada said that at the hearing, the commission would also discuss with Pertain about the possibility of establishing a refinery plant in Rio province, which at present still relies on Petrofina's refinery operation in Medan to supply the province's needs for gasoline and other fuel products. (*)