Govt says provinces can seek participating interest in oil, gas blocks

A senior government official said Thursday the provinces can seek participating interest in oil and gas projects as it is allowed by existing regulations.

?Existing regulations on production sharing contracts allow such participation," BPMIGAS chairman Rachmat Sudibyo told Petromindo.Com Thursday. BPMIGAS holds the highest authority in the country?s upstream oil and gas sector.

Rachmat said the provinces could follow the move taken by the Riau provincial administration that had acquired a working interest in Coastal Plain Pekanbaru (CPP) oil block located in the area.

Riau province, through its company PT Bumi Siak Pusako, currently operates and manages CPP block in cooperation with state oil and gas firm Pertamina, under a 50:50 percent share. Previously, PT Caltex Pacific Indonesia operated the block.

On Wednesday, East Java governor Imam Utomo met with a House commission, asking for support to its plan to seek participating interest in oil and gas fields in his area.

BP Indonesia and ExxonMobil Corporation operates oil and gas fields in East Java. (godang)