CNOOC-Pertamina barred from drilling Sukowati field
Tuesday, April 5 2005 - 03:36 AM WIB
The Bojonegoro regency administration has barred the CNOOC-Pertamina joint operating body (JOB) from continuing drilling activities at the Sukowati field in East Java following the joint venture?s rejection of the regency?s request for a 10 percent stake in the field.
Amir Hamzah, spokesman for upstream authority BP Migas said, the joint venture of Indonesian and Chinese state firms had rejected the regency?s request on the grounds that the field was not a new development field.
The regency however insisted that it was a new development field and thus the regency had the right to take a 10 percent stake in the field.
Based on the existing regulations, oil and gas contractors are obliged to offer a 10 percent stake in their fields to the local administration once they start developing the fields.
Amir said both parties were negotiating to settle the dispute.
?We hope both would settle the dispute through a business-to-business deal,? Amir said.
According to Amir, while CNOOC-Pertamina has stopped drilling activities due to the regency?s order, oil production at Sukowati remains normal.
The joint venture began production activities in August, last year with a capacity of 7.000 barrels per day. (Alex)