Riau wants to become operator of CPP oil field

Riau has demanded the government to appoint it as the operator of the Coastal Plain Pekanbaru (CPP) oil block if the province is only given a 20 percent interest in the disputed oil field, BuanaNews reported on Thursday.

In his letter to President Abdurrahman Wahid, the chairman of the province's legislative council Chaidir said that giving the province the position as the operator of the oil field would be the best solution that could end the dispute over the future of the oil field.

"Giving the province the chance to act as the operator of CPP is much more realistic rather than closing the oil field," he said in his letter.

Riau students last week demanded the closure of the oil block, if the central government allocates only 20 percent interest of the CPP to the province. The students said that the province should be given the opportunity to operate the oil block, which is now operated by Caltex Pacific Indonesia.

State owned oil company Pertamina, which represents the government interest, and the Riau administration have insisted to become majority shareholders of the oil field once the current contract ends in August, this year. The dispute might cause the delay in the transfer of the oil field from Caltex to its future operator.

Riau Pos also reported on Monday that the province's leading figure Thabrani Rab had also sent a letter to the President questioning the central government's policy over the CPP oil field.

"I have been given the chance to meet the President on Friday or on Saturday to discuss the future of the CPP oil field," said Thabrani, who last year organized a number of massive gatherings demanding separation from Indonesia.

In the meeting, Thabrani said, he would tell the President that the Riau has many skilled people who could help the province to directly operate the oil block.

The province has been said of being lack both of technology and financing capability to operate the oil block. (*)