East Java demands participating interest in oil, gas blocks

The legislative council of East Java and local state-owned enterprises (BUMD) have proposed to the House of Representatives (DPR) to allocate at least 10 percent interest in each of the oil and gas blocks located in the province to the local government.

"We have just received representatives of the East Java legislative council and BUMD. They propose at least 10 percent participating interest of all oil and gas fields in the province to be given to the provincial administration,? said Dito Ganinduto, a member of the House?s Commission VII in charge of investment, trade and oil and gas.

The East Java legislators wanted at least 10 percent interest in each of the four major oil and gas blocks in the province, which are currently operated by a number of local and foreign oil companies.

"They want to be involved in the operation of the Kangean block which is operated by PT Kangean Energy Indonesia (KEI); the Madura block which is operated by Husky Oil Madura Ltd; the block operated by Pertonas Carigali and the West Madura block operated by Kodeco Energy,? he said.

Petronas has several oil, gas blocks in East Java including Muriah PSC, Ketapang PSC.

However, the Commission VII had not yet discussed the proposal because it had not stated in details such as regarding the company which would represent the local government in the operation of the oil and gas fields, he said. (*)