Riau will soon file proposal to operate CPP oil block

The Riau provincial administration will soon file a proposal to operate Coastal Plain Pekanbaru (CPP) oil block to the Ministry of Mines and Energy, Riau Pos reported on Monday.

Riau governor Saleh Djasit said in Pekanbaru over the weekend that the proposal, which would be completed within this week, would contain the readiness of the provincial administration to take over the management of the oil block.

The governor also said that the proposal would also include alternatives that would be taken by the provincial administration in operating the oil block. The alternatives include the operation of the oil block directly by the local government and by a joint venture with other parties.

The province had yet to decide which alternatives would be taken, but the establishment of a joint venture would be more appropriate, he said.

Several companies have expressed interest to join the Riau province to operating the oil block and some of them have given a presentation at the provincial's legislative council.

The council's chairman Chaidir wanted the local government to open a tender to find the best partner in operating the oil block.

"Kondur Petroleum, a local oil company, has made its presentation. I personally want Petronas of Malaysia to do the same," he said. But he did not mention whether the Malaysian oil giant was also interested in operating the oil block. (*)