SPE to begin exploration at West Kampar oil block in 2006

PT Sumatera Persada Energi will begin exploration activities at the company's new oil concession West Kampar oil block, in Riau, with initial investment of about US$12.5 million.

The company's president director Gurhadi Kartasasmita said in Jakarta last week that he hoped that the exploration activities could be started next year despite the ongoing dispute between the Riau residents and the central government over the rights to develop the oil block.

"We are ready to provide initial investment of about US$12.5 million for the project," he said.

The West Kampar block is one of 9 oil blocks offered by the government through a direct offer early this year. The local residents in Riau have protested the appointment of SPE to develop the oil block. According to the residents, the Riau administration has the rights to decide the future of the oil block. (dino)