ExxonMobil asked to clarify status of its oil concession area

Regency-level legislative council of Bojonegoro in East Java has again urged American oil giant ExxonMobil Oil to clarify the status of the oil concession area which the company took over from former contractor Humpuss Patra Gas (HPG).

"ExxonMobil should be transparent about the ownership of the concession area. The company should explain to public the process related to the change of the ownership," Sunaryo Abumain, the chief of the Commission D of the Bojonegoro legislative council was quoted as saying by Radar Bojonegoro on Thursday.

According to Sunaryo, the explanation is needed so that there will no more confusion related to the ownership of the oil concession area. He said that many people still complained due to unfair decision made by Humpus during the clearance of its concession area.

Sunaryo said that under the previous contract, Humpus would only operate the concession area until 2010. "If the land is now owned by Exxon, there should be an explanation to the public," he added.

Deputy Project Manager of ExxonMobil Thor Sutanassin said in a recent hearing with the Bojonegoro legislative council that the concession area, which the company took over from Humpus, covered 1,200 sq kilometers of area in Blora, Tuban and Bojonegoro. The area is directly operated by ExxonMobil?s subsidiary Mobil Cepu Limited (MCL).

"The concession area which is located in Bojonegoro covers about 850 sq kilometer," he said.

MCL?s Public Affairs Manager and Operation Supervisor, Ekhsan, said that the concession area is owned by the state and local residents. "ExxonMobil is only allowed to explore oil and gas in the area," he said. But he said he knew nothing about the land clearance problem between Humpus and the locals. (*)