EXCLUSIVE: Conoco suspends exploration in Warim block

Conoco Indonesia Inc., a subsidiary of American energy firm Conoco Inc., said it had suspended exploration activities in the Warim block in Irian Jaya, where it had found indications of huge oil reserves.

The company's vice president for development and relations AR "Dudung" Natanegara told Petromindo.Com on Wednesday the company decided to suspend the exploration activities after some parts of the block were considered to be situated in the Lorentz National Park conservation zone.

According to Dudung, the Warim block stretches for 200 kilometers from the Jaya Wijaya regency in Irian Jaya's hinterland to the Merauke regency near the Papua New Guinea border.

The block is bordered by the Lorentz National Park on the west, which was put on the World Heritage list by the United Nations of Educational, Scientific and Cultural Organization (UNESCO) in 1999.

Dudung said the block was considered to be located outside the national park when Conoco received its porduction sharing contract (PSC) from state oil and gas company Pertamina in 1987.

But, the government expanded the national park's territory to also cover 150,000 hectares of the Warim block in September 1998, banning exploration activities in the area.

The government's move forced Conoco to halt exploration activities in the block, Dudung said, noting that parts of the Warim block situated in the conservation zone were among the richest with hydrocarbon resources.

Dudung said Conoco had spent US$182 million for exploration activities in the block since 1987.

He said Conoco had thus far believed the block contained a "huge oil resources" but he refused to specify.

Dudung said Conoco had asked the government to review its decision to expand the Lorentz National park boundaries to enable it to resume its exploration works.

However, he said the governmental agencies, including the ministry of energy and mineral resources, the ministry of forestry, were still studying the request.

Dudung said Unesco had met Conoco's request to exclude the Warim block's area from the Lorentz National Park's territory.

Dudung also denied allegation made by some non-governmental organizations that Conoco's exploration activities had caused damaged to environment.

"Conoco has stopped exploration activities since 1998. How can they accuse us of damaging Lorentz national Park?" he said. (Alex)