Blockage continues at Pertamina, Gulf operation in Jambi

State oil and gas company Pertamina and Canadian firm Gulf Indonesia Resources are still unable to resume their joint operation in Kenali Asam Bawah, Jambi due to blockage by locals, a Pertamina senior official said.

The villagers, who started blocking off the access road to the oil fields operated by the Pertamina-Gulf joint operating body (JOB) in mid-May, still refused to put an end to their action, Sidick A. Nitikusuma, the head of the general affairs office at Pertamina?s directorate of production sharing management, told Petromindo.Com Wednesday.

Sidick said Pertamina and Gulf had reported the case to local police and government, asking for helps to end the blockage.

?Negotiation efforts by official mediators, including local district head, village head, and unofficial mediators, including local community leaders and religious, have thus far brought no results,? Sidick said.

Sidick said the villager were now not only blocking off the access road but also occupying the oil drilling rig owned by the JOB, oil well maintenance facilities owned by service company Halliburton and heavy equipment at the operational site.

The villagers were demanding Pertamina and Gulf to deliver on their promise to asphalt the village?s road.

Sidick said the road was first actually built by Pertamina and no one lived in the area when the road was built many years ago.

Pertamina and Gulf later improved the road?s condition using gravel and calcium chloride at the cost of Rp 167 million, to meet the standards for oil operation.

He admitted that the JOB?s field manager once signed an agreement with the villagers that the JOB would asphalt the road.

Asphalting road around oil operation was actually unusual and has never been done by Pertamina, but Sidick said, Pertamina and Gulf had goodwill to asphalt the road in line with the agreement.

The heavy rainfall in May and June had prevented both companies from doing the asphalting works and, furthermore, the villagers turned down the request of both companies to end the blockage once the asphalting works started, according to Sidick.

According to Gulf, there are now three oil fields in the area ? the Kenali Asam, Tampino and Bajubang fields ? with a daily output of between 2,000 and 3,000 barrels.

The company said in its website that production in the area dated back to the early 20th century. Gulf signed a 15-year enhanced oil recovery contract with Pertamina in 1990.

The pilot waterflood project at Kenali Asam began production in 1992 and in 1996, it added the Tampino and Bajuabang fields.

Gulf has a 60 percent working interest in the Jambi JOB. (Godang)