Riau warned not to be trapped into CPP case

Legislators have warned the Riau people not to be trapped in their effort in taking over Coastal Plains Pekanbaru (CPP) oil block because giving too much attention on such an issue could be counterproductive, Berpolitik.com reported on Tuesday.

Hatta Radjasa, a member of the House of Representatives, said in Pekanbaru on Monday that the most important things of all for the province was how to receive a larger share in the production of oil and gas production.

He said the production sharing scheme of 85 percent to the central government and 15 percent to provinces as stipulated in the intergovernmental fiscal balance law which would be implemented beginning next year should be changed because the scheme still gives too high portion to the central government.

Hatta of the National Mandate Party (PAN) said that the oil and gas law, which grants exclusive rights to Pertamina in the exploration and production of the country's oil and gas resources should be also revised so that the province, which technically owns the resources, should be given more privileges.

Riau, the country's largest oil producing province, has been given approval to take over the management of the CPP oil block when the current contract, now held by PT Caltex Pacific Indonesia (CPI), expires next year.

Hatta said that he supported the Riau provincial administration to carry out the job although he admitted that the takeover of the oil block would not give significant contribution to the provincial budget if Pertamina still acts as the "master" of the country's oil and gas operation. (*)