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Riau students demand gas block nationalization PEKANBARU, RIAU - Dozens of students who are members of the Executive Board of Riau University`s Students, staged a protest by blocking the entrance to PT Chevron Pacific Indonesia in Rumbai complex, Pekanbaru on Tuesday.

The students asked the government to nationalize the oil and gas company by not extending the Siak oil blocks contract in Riau to Chevron. During the rally, they carried banners condemning the presence of the foreign company that has existed in Indonesia for 88 years.

Chevron`s Siak Block contract will expire in November 2013, but the company has proposed an extension to the Ministry of Energy and Mineral Resources. The protest escalated as the students burned tires and broke into a five-meter high metal gate. The rally, however, was basically still under control.

"The domination of foreign capital on the country`s natural wealth is increasing every year because our regulation is made under free competition idea. Consequently, state enterprises become stepchildren in managing natural resources in their own country," said the rally`s field coordinator, Yopi Pranoto.

Yopi said that the country`s sovereignty has been hijacked by a foreign power and capital-intensive capitalists. As a result, the rule of law is subject to legitimize the position of large investors who can afford to pay for the sake of their wealth.

"Indonesia has not been sovereign for its natural wealth so far, in fact we will face rising fuel prices," he said. Furthermore Yopi said that student support the legal effort on alleged corruption case in the bioremediation project involving Chevron employees and its associates as a suspect. The waste treatment case is now under the court process in Jakarta.

He said the students support the judges to be objective and not be provoked by the company that conducted a campaign to manipulate public opinion. "Investigate thoroughly the bioremediation case to provide legal certainty in Indonesia," he said.

Separately, Chevron Communications Manager Tiva Permata responded that all assets and facilities managed by PT Chevron Pacific Indonesia are state-owned.

In its operation, Chevron works based on production sharing contract and under the supervision of Special Unit Managing Upstream Oil and Gas (SKK Gas) as representative of the government of the Republic of Indonesia.

"Chevron is a Production Sharing Contract Contractor of the Indonesian Government, and has been given the task to manage and operate the assets of state oil and gas sector, of which include land, buildings, pipelines and electricity, as well as other facilities," said Tiva in press release.

The Siak Block contract extension now depends on the Indonesian government`s decision, said Tiva. "Anyone who will operate the block is expected to provide optimum benefits for the country and the province of Riau," she said.


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Related blog entries (category 'Economy') Tags: gas, block, nationalisation, demand


Posted in Economy @ 07 May 2013 19:26 CET by Blog Bot · 'Blog' RSS feed · permalink






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