Siak?s demand to control 70% of CPP oil block rejected

The demand of Siak, one of regencies in oil rich province Riau, to acquire a 70 percent interest in the Coastal Plain Pekanbaru (CPP) oil block has been rejected by the provincial administration, Bisnis Indonesia reported on Monday.

Riau governor Saleh Jasit has denied the Siak regency?s demand although larger parts of the oil block are located in the regency. ?Giving the regency a control could incite jealousy among other regencies in the province,? a source told the daily.

The CPP oil block is part of Caltex Pacific Indonesia?s oil concession areas in Riau. The oil block will, however, be transferred to Pertamina in August after its contract ends.

Pertamina and the provincial administration of Riau have agreed to jointly operate the oil block. But the Siak regency where most parts of the CPP oil block is located demanded the 70 percent interest in the oil block.(*)