BP asked to submit to DPR business plan on E. Java?s Kangean block
Thursday, November 21 2002 - 02:52 AM WIB
?We need to see BP?s working plans. We have to make sure that the company will exploit natural gas on Kangean after its contract for the block has been extended,? said Julius Bobo, chairman of DPR?s special team tasked with examining BP?s request for the government?s approval to extend its Kangean contract. The team is part of DPR?s Commission VIII in charge of energy and mineral resources, science and technology, and environment.
Julius added: ?We do not want to see that after the Kangean is extended, and the company discovers new gas reserves on the block, they come again and ask for another contract extension while nobody knows when gas production will commence.?
He said with adequate information about BP?s working plans, the government could consider whether or not to allow other oil producers to supply natural gas to East Java. BP has preferential rights to supply the province with gas from the Kangean block.
The legislator said that they had on Tuesday asked BP to submit to the House its working plans on the Kangean contract area.
Julius said most production sharing contractors had not produced working plans on their contract areas.
?They have only produced reports on their financial condition, production, and where to sell their products and so on,? Julius said after attending a closed door meeting at the House with senior executives of four oil and gas producers ? ExxonMobil Indonesia, Amerada Hess, Kodeco Energy and Lapindo Brantas.
The House team was scheduled to meet with BP-Migas leaders on Wednesday evening so as to discuss with them about the importance of encouraging oil and gas contractors to produce working plans.
BP-Migas holds the highest authority over the country?s upstream oil and gas sector.
BP had requested the government to extend the contract of its Kangean block off the coast of East Java for another 20 years after it expires in 2010.
The government will make final decision on BP?s request for Kangean block extension based on the results of the study conducted by the House?s special team.
Julius said DPR will on Monday submit recommendations to the government about BP?s request, based on the team?s study.
?We have to supply enough natural gas to East Java. That is the main consideration behind any decision concerning BP?s request,? Julius added.
?But, we will increase our bargaining power in our deal with BP. We will ask for more compensations like community development,? Julius told Petromindo.com on a separate occasion on Wednesday.
BP said it intended to develop Terang Sirasun gas field on Kangean as gas reserves at the current Pagerungan field, located in the same block, is depleting. East Java has experienced acute gas supply shortage over the past months due to the drop in gas supply from Pagerungan. (leo/alex)