University of Riau supports CPP takeover

Students of the University of Riau have formally issued a declaration to support the plan of the local government to take over the Coastal Plain Pekanbaru (CPP) oil block once the current contract now held by PT Caltex Pacific Indonesia expired, Riau Pos reported on Saturday.

In the statement issued by the students' legislative council, the students said that the province's decision to take over and manage the oil block should be supported because only with such strategy, the locals would be able to optimally benefit from their own oil resources.

"The local government's demand to take over the oil block is normal and it should therefore be supported," the statement added.

President Abdurrahman Wahid has agreed with the Riau province's demand to operate the oil block. But many parties have expressed their doubts over the capability of the province both in term of technology and financing in operating the oil block despite several local companies have expressed their readiness to cooperate with the province.

Kondur Petroleum is the last local oil company to express its interest to join the province but the local legislators questioned the company's capability. (*)