Govt may revoke ConocoPhillips Papua exploration block contract

Government might move to annul production sharing contract of Warim block onshore Papua province after operator US firm ConocoPhillips failed to meet its obligation to conduct exploration on the block for the last 10 years.

Upstream Director at the Ministry of Energy and Mineral Resources R.Priyono told reporters in Jakarta on Tuesday that Conoco was unable to conduct exploration activities in the area. 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 and therefore drilling activities are prohibited.

ConocoPhillips had suspended exploration in the area since 1998.

ConocoPhillips has 80 percent participating interest in the block, while Australian oil firm Santos Limited holds the remaining 20 percent.

Warim is part of 12 blocks which licences the government has been threatened to revoke due to exploration inactivity. (bernard)