177 million barrels of crude transferred to Lampung administration

The Lampung administration will have the rights over 177 million barrels of crude reserves in the Sunda Straits, currently managed by Indonesia-Argentina joint venture PT Maxus, an official said.

The head of Lampung mines and energy office, Effendi Husin, said that the handover of authority from the central government to Lampung administration would be conducted only after the issuance of government regulations to implement Law No. 22/1999 on local autonomy and Law No. 25/1999 on fiscal balance between central and local governments.

"So far, the Lampung administration has never been involved in the exploitation of oil in that area although the area belongs to Lampung. But what's more important is that our proposal has been accepted by the central government," Effendi told Sriwijaya Post on Wednesday.

The locations of the oil exploration by PT Maxus are located Seribu islands, however, one of the exploration sites is located in Segama Island that belongs to Lampung.

"Currently, the Lampung administration has not yet questioned the status of that island, and that island will be included in what regency. Geographically, it should belong to Lampung Timor regency. But again, what's more important is that we fight to get our rights, then we will discuss with regencies," Effendi said.

PT Maxus, according to Effendi, has been operating in the areas since 1980s, and produces 130,000 barrels of crude per day. (*)