EMP temporarily shuts down Kangean gas operations on locals' protest

EMP Kangean, a unit of JSX-listed oil and gas firm PT. Energi Mega Persada (EMP) is forced to temporarily shut down gas operations at Kangean PSC in East Java since Saturday after almost one thousand of protesting locals entered the gas processing compound in Pagerungan island, demanding compensation, a BPMIGAS official said on Monday.

BPMIGAS spokesperson Amir Hamzah said some 40MMCFD of gas supply to East Java was cut after EMP shut down Kangean?s processing plant for fear that the protesting locals might endanger gas operations. Amir said that the workers were evacuated from pagerungan island to nearby Sepanjang island.

He said that despite the shutdown, gas supply for East Java might not be disturbed as Santos-operated Maleo field in Madura PSC had been instructed to increase gas output from 35MMCFD to 80MMCFD. Gas from both blocks is transported through the same pipeline.

Amir said that the locals are demanding compensations such as up to Rp.2 billion (US$=Rp.9,000) per month of cash payment, construction of fishing port and unlimited supply of electricity for the island?s residents.

Amir said BPMIGAS and EMP is currently coordinating with local government and police to solve the problem.

EMP, which is controlled by the family tycoon cum minister Aburizal Bakrie, has 100 percent working interest in the block. (alex/godang)