Bojonegoro revokes permit of Banyu Urip field

The Bojonegoro regency administration had on February 16 revoked the so-called nuisance permit (known locally as izin gangguan or hinder ordonantie/HO) of Banyu Urip Pad C field in Cepu Block, operated by ExxonMobil Cepu Ltd, Kompas reported on Tuesday.

The paper said that the permit was revoked as land lease agreement with the local Gayam Village administration, in Gayam District, Bojonegoro Regency, Central Java, has expired since February 11.

Didik Sasono, Head of Formality Work Committee at upstream oil and gas authority SKK Migas, was surprised with the decision, saying that according to Law No 2/2012 on regional administration, the local government is responsible in providing land for projects of public interest such as the Banyu Urip field in Cepu block.

He said that the Banyu Urip field is a key source of oil production in the country.

Meanwhile, Deputy Speaker of the Bojonegoro Legislative Council (DPRD), Anam Warsito was quoted by Antara as saying that SKK Migas should purchase land in three locations proposed by Gayam villagers to replace village land used for the Banyu Urip project.

He said that the DPRD has discussed this issue with SKK Migas, which will consult first with the Ministry of Finance, supreme Audit Agency (BPK), and the Corruption Eradication Commission (KPK) to make sure that the land acquisition does not breach existing regulations. (*)