Riau wants Jakarta to transfer operation of Lirik oil block to locals

PT Riau Petroleum (RP), an oil company set up by Riau provincial administration to handle the province?s oil and gas operation, has accused Minster of Energy and Mineral Resources Purnomo Yusgiantoro of breaking his promise to hand over the operation of the Lirik oil block to the provincial administration, Neraca daily reported on Tuesday.

RP?s Tengku Amir Sulaiman, said on Monday that the minister promised to transfer the operation of the Lirik oil block early least year when the local administration and the central government negotiated the transfer of the Coastal Plain Pekanbaru (CPP) oil block to the local authority.

But he said that the minister had never fulfilled its promise and the oil block which has been left by its contractor Stanvac for years was still being operated by state owned oil and gas company Pertamina. "We have tried hard to meet the minister to talk the transfer of the Lirik oil block but we always failed," he added.

The Lirik oil block located in the Indragiri Hulu regency has been operated by Pertamina since Stanvac left the oil block in early 1990. The oil block which has eight oil wells produces about 1,000 barrels per day. According to the initial plan, two of the wells will be transferred to the local government which at present jointly operates the CPP oil block with Pertamina. (*)