Riau students demand control over oil resource

Hundreds of students originated from Riau province took to street in Jakarta on Wednesday demanding the government to allow the Riau province manage oil resource in the province, Riau Pos reported.

The students, carrying banners requiring Pertamina's monopoly in the exploration and production of oil and gas in the country, directly aimed their protests at Minister of Mines and Energy Soesilo Bambang Yudhoyono, Minister of Finance Bambang Sudibyo and Coordinating Minister for Finance and Trade Kwik Kian Gie.

The students grouped in the association of Riau students (Hipemari) demanded the government to allow the provincial administration to take over the management of the Coastal Plains Pekanbaru (CPP) oil block, which is currently managed and operated by PT Caltex Pacific Indonesia.

Gatot Kariyoso Wiroyudo, the state oil and gas company's director for exploration and production, said in Jakarta on Monday that Pertamina, which previously demanded for at least 60 percent, was ready to have only 55 percent as long as its partner Caltex Pacific Indonesia (CPI) agreed to carry out a long-term transfer of technology program.

The contract of the CPP oil block, which is currently held by PT Caltex, will expire in August next year. The oil block produces crude oil of about 70,000 barrel per day.

The Riau province has demanded the government to allow it to take over the management of the CPP oil block when the current contract expired or at least allow it to have a stake in the proposed joint venture. But the demand was rejected on the ground that the government's stake in all oil and gas producers in the country should be given to Pertamina as the sole representative of the government. (*)