Bengkalis people demanded Malacca Strait PSC contract extension be revoked

A number people of Bengkalis, Riau province grouped in United Merbau People (MMB) protested over contract extension of Malacca Strait PSC in Central Sumatra without involving local people, Riau Pos reported.

MMB said the contract extension was illegal because the extension was granted without involvement of local council and Bengkalis regency administration and demanded that the contract extension be revoked. MMB also demanded that Bengkalis people be given right to manage the block.

The government through state oil and gas company Pertamina in 2001 granted 20 years contract extension to operator PT. Kondur Petroleum. The Malacca Strait PSC first PSC contract will expire in 2005.

Malacca Strait PSC currently produces some 10,000 barrels of oil per day.

Kondur Petroleum, which is run by Bakrie Family, has 35 percent working interst in the block, while CNOOC, Reliance Universal and Malacca Petroleum has 33 percent, 25 percent and 7 percent, respectively. (*)