Councilors support move to ban Santa Fe from making new sale contract

Some members of the legislative council in Jambi province supported Governor Zulkifli Nurdin's recent move to ban Santa Fe Energy Resources Ltd from making new oil and sale contract, Sriwijaya Pos reported on Wednesday.

The councilors said that a firm action was needed to prevent from the reemergence of the old practice, which often ignored the interest of the local people. "It is high time now for the Jambi people to enjoy the benefit from their own natural resources," Iskandar Rais, one of the councilors, told the daily.

Ismet Kahar, another member of the council, also supported the governor's move, saying that the local administration should be given the chance to express their view regarding the operation and management of oil and gas activities in the province.

"The governor is right because what he did is for the welfare of the people," he added.

He said that the development of oil and gas resources in the country including those in Jambi is still unfair because most of the proceeds generated from the natural resources development are still enjoyed by the central government.

Pertamina early this week signed a long-term contract to sell natural gas to Singapore. Part of the gas will be produced by Santa Fe.

The governor said that he was not involved in the negotiations of the gas sales from his province. "Any sale contract should be negotiated with the local government," he said, adding that if Santa Fe continued to make gas and oil contracts, their will be more resource left for the refinery plant which will be built in the province. (*)