BPMIGAS recommends Pertamina to operate exploration block in disputed area

Upstream oil, gas authority BPMIGAS has recommended that Ministry of Energy and Mineral Resources gives operatorship of an offshore exploration block which is located in disputed area between Indonesia and Malaysia to state oil, gas company PT Pertamina (Persero) after US oil, gas giant Chevron Corp. quit the block, a senior BPMIGAS official said.

Vice Chairman Hardiono told Petromindo.Com on Thursday that BPMIGAS recommended that the block be given to Pertamina without tender as en effort to assert Indonesia?s sovereignty over the area.

Chevron relinquished its 100 percent interest in East Ambalat PSC in December 2010 after six-year exploration period ended and the company was unable to drill in the area due to Malaysia's claim that the part of the working area is located within the country?s territory.

?Pertamina is a symbol of Indonesia?s sovereignty, therefore BPMIGAS recommended that government tasks Pertamina to operate East Ambalat ,? he said.

Director General of Oil and Gas Evita Legowo said that the government has yet to make decision about the matter, saying that the Energy Ministry will first consult the Foreign Ministry. (bernard)