BP advised to await govt decision on Kangean block

Anglo-American energy firm BP Indonesia has been advised not to sell some of its interest in Kangean oil and gas block in East Java before the government decides whether or not to extend contract on the block as requested by the firm.

"It is really very unethical if the company sells some of its interest in the block to other contractors before the government decides on its request," BPMIGAS deputy head Kardaya Warnika told Petromindo.com on Thursday.

BP's government and public affairs manager for Java Budi Santoso recently said that his company was planning to reduce its interest in Kangean and that it was in negotiations with Indonesian and international companies to sell some of interest in the block.

Meanwhile, the company had requested the government to extend its Kangean block contract so as to enable it to explore the block's Terang Sirasun field. The block contract is due to expire in 2010. The government has yet to make a decision on the request. (godang)