BPMIGAS formally notified on returning of concessions

By Godang Sitompul

Upstream authority BPMIGAS has formally received notification letters from Anadarko and Marathon Energy, informing that the oil and gas companies have decided to return their concessions in Sulawesi to the government, due to their failures in explorations, a senior official of BPMIGAS said.

?We?ve received their notification letters on the returning of their concessions to the government. The Anadarko?s concession is in Makassar Strait, while the Marathon?s is in Pasang Kayu. Both admitted to have failed in their explorations,? BPMIGAS Deputy for Planning, Haposan Napitupulu, told Petromindo.com in Jakarta on Wednesday.

He did not give any further details, or whether there would be more companies returning their concessions to the government.

But a reliable source told Petromindo.com that there were many more of oil and gas companies, mostly in the Makassar Strait, which would return their concessions to the government because of their failures in explorations. "Talisman in Sageri Block, Hess in Semai V Block, and Exxon in Surumana Block are considering to return their blocks to the government,? said the source.

But Evita H. Legowo, Oil and Gas Director General at the ministry of energy and mineral resources, denied that there had been companies returning their concessions to the government. ?No, not yet. We know that some of the blocks are difficult for exploration. But so far, we haven?t got any such notification letter,? she said.

Marathon has drilled two wells in Pasangkayu block, namely Bravo-1 and Romeo-1, both declared dry hole.

Marathon has 70 percent interest in the block with the balance held by Canadian oil, gas firm Talisman Energy.

Marathon also said it planned to shift from an operating to a non-operating position in both the Bone Bay and Kumawa PSCs this year. Marathon's partner in both blocks is Canadian oil, gas firm Niko Resources.

Editing by Benget Besalicto Tnb.