BPMIGAS welcomes regional govt participation in Mahakam Block

Upstream oil and gas regulator BPMIGAS supported the East Kalimantan provincial administration?s intention to have a participating interest in the Mahakam Block.

Chairman R. Priyono said on Thursday that the regulatory agency provides opportunities for local governments to participate in managing oil and gas block located in their respective territory. But he warned that it will not come cheap, as the local government must allocate huge amount of funds to help develop the oil field.

?What must be observed is the funding, because the oil and gas industry requires intensive capital and technology,? Priyono told reporters on the sidelines of a fast-breaking ceremony with East Kalimantan Governor Awang Faroek. (*)