Riau's legislative council calls for closure of CPP oil block
Thursday, March 1 2001 - 05:00 AM WIB
A senior member of the legislative council of Riau province has called for the closure of the Coastal Plain Pekanbaru (CPP) oil block, if its operation does not bring much benefit to the local people, Riau Pos reported on Thursday.
Abdul Kadir Salim, the chairman of the council's Commission IV said in the provincial capital of Pekanbaru on Wednesday that if the provincial administration only received a 10 percent stake in the oil block, it would be better to shut down the oil block.
"With such minority ownership, the local people would receive nothing from the operation of the oil field", he said. "Our commission's position is clear. If the central government does not raise the province's ownership, the oil block is better closed down," he added.
According to him, the commission would ask other council's members to hold a plenary session to reject the central government's decision.
The Ministry of Energy and Mineral Resources has decided to give Riau 10 percent stake in a joint venture, which will operate the CPP oil block when the current contract now held by Caltex Pacific Indonesia (CPI) expires in August. The other 90 percent are allocated to Pertamina.
But the local legislators have rejected the offer although Riau governor Saleh Djasit hinted that he had no choices but to accept the offer. The legislators insist to have at least 70 percent in the CPP oil block.
According to Energy and Mineral Resources Purnomo Yusgiantoro it is up to Pertamina if it wants to involve Caltex in the future operation of the CPP oil block.
Sources said earlier that Pertamina will share its 90 percent ownership in the oil block with Caltex but the amount of the Caltex stake has not been decided. (*)