Siak regency to be awarded greatest portion of Riau's stake in Caltex's block
Monday, May 27 2002 - 04:10 AM WIB
The Riau provincial administration will surrender to Siak regency the greatest portion of the province?s stake in Coastal Plain Pakanbaru (CPP) oil block which PT Caltex Pacific Indonesia (CPI) will hand over to Indonesia in August, Riau governor Saleh Djasit said as reported by Koran Tempo daily on Monday.
?Siak will get a simple majority stake,? Saleh told reporters.
CPP is located in Siak, which is the reason why the Riau administration decided to surrender to the regency the majority stake, the governor said.
The Riau administration had planned to divide the 50 percent shares of the CPP block among all four regencies in the province.
Meanwhile, the Siak government had demanded that it get 70 percent of the stake to be handed over to Riau.
CPI, a unit of world energy giant Chevron Texaco, will end its CPP contract in August.
State oil and gas company Pertamina and Riau Province in January signed 50-50 percent share agreement on the CPP oil block. (*)