Riau rumored to pick China Petroleum to develop CPP block

China Petroleum is rumored to be the strongest candidate to become the partner of the Riau administration in managing the Coastal Plains Pekanbaru (CPP) oil field, according to the Tempo magazine in its latest edition.

Although several candidates are now applying to become Riau's partner in managing the CPP block, Tempo quoted a source as saying that the provincial top officials already had one name, which is China Petroleum.

PT Caltex Pacific Indonesia will end its control over the CPP block, which has a daily production of 70,000 barrel of oil per day, in August 2001.

Initially, the government planned to hand over the management of the oil block to the state owned oil and gas company Pertamina, which had also started negotiation with Caltex to jointly manage the oil field.

But the government back down from the plans following strong demand from Riau to manage the CPP block.

Tempo said that during a visit in April to Pekanbaru, President Abdurrahman Wahid gave his full support to Riau administration to manage the CPP block. The magazine said that it was during the visit that Abdurrahman whispered the name of China Petroleum.

Tempo also said that Minister of Trade and Industry Luhut Panjaitan played a key role in lobbying the President to pick China Petroleum. (*)