Pertamina to own majority stake in CPP oil block: Govt<\/p>\n
JAKARTA (JP): The government said state oil and gas company
\nPertamina will own the majority stake in a joint company that
\nwill operate the Coastal Plains Pekanbaru (CPP) oil block in
\nRiau.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid the government would decide Pertamina's exact share in
\nJanuary next year.<\/p>\n
\"I think in January we can decide for sure how much Pertamina
\nwill own,\" Purnomo said on Friday during a break in a meeting in
\nMerak, Banten, on how to stop fuel smugglers.<\/p>\n
Pertamina and the local government in Riau will form a joint
\nventure to operate the CPP oil block after Caltex Pacific
\nIndonesia's contract rights to the oil block expire in August
\nnext year.<\/p>\n
Purnomo emphasized that Pertamina's stake would be more than
\n51 percent, thus ruling out Riau's demand for a controlling part
\nof the joint venture.<\/p>\n
Riau's local government has insisted it be given a 70 percent
\nstake, claiming it was fully prepared to operate the oil block.<\/p>\n
However, Purnomo said the government considered Riau's demand
\nto contravene the regional autonomy law, under which the oil and
\ngas sector remains under the central government's control through
\nPertamina.<\/p>\n
The decision, Purnomo said, was taken by a coordinating team
\nof ministers comprising Minister of Home Affairs and Regional
\nAutonomy Surjadi Sudirja; Coordinating Minister for Political,
\nSocial and Security Affairs Susilo Bambang Yudhoyono;
\nCoordinating Minister for the Economy Rizal Ramli; and Purnomo.<\/p>\n
The ministerial team last week took over talks to determine
\nCPP's future ownership, after long negotiations between
\nPertamina, Riau and Caltex failed to bear results.<\/p>\n
Pertamina president Baihaki Hakim further said bowing to
\nRiau's demand might set a precedent for other natural resource-
\nrich regions to put forward similar claims.<\/p>\n
\"The problem here does not only affect Riau, but is related to
\nproblems in other regions as well, like Aceh and Irian Jaya,\" he
\nsaid.<\/p>\n
He added that the government had yet to inform Riau of its
\ndecision to grant Pertamina the majority stake in the oil block.<\/p>\n
As for Caltex, he said the company might be included in the
\njoint venture, once Pertamina and Riau have reached an agreement.<\/p>\n
\"But this is not mandatory. I have heard that other parties
\nare also interested,\" he added.<\/p>\n
Baihaki, who is a former president of Caltex, was referring to
\nthe China National Offshore Oil Company.<\/p>\n
Caltex initially wanted to extend its contract to the CPP oil
\nblock. The company and Pertamina had almost reached an agreement
\nover their respective stakes in CPP when Riau's wish to operate
\nthe oil block was unexpectedly granted by President Abdurrahman
\nWahid.<\/p>\n
According to Purnomo, Caltex will pull out of the negotiations
\nshould the opportunity to obtain a feasible stake in the joint
\nventure diminish.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-own-majority-stake-in-cpp-oil-block-govt-1447893297",
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