Govt urged to allow Conoco to explore oil in Lorentz Park

The legislative council of Jaya Wijaya regency in Irian Jaya has called on the government to allow oil and gas company Conoco Indonesia to carry out exploration on the Lorentz National Park conservation area, Bisnis Indonesia daily reported Friday.

John Tabo, the chairman of the council, said on Thursday that the Forestry Ministry should relocate the conservation area to allow the company to start its gas exploration activities. ?The people hope the government will soon relocate the conservation forest so that the gas projects would run as scheduled,? he added.

Conoco Indonesia Inc., a subsidiary of American energy firm Conoco Inc. suspended the exploration activities in the Warim block I after being accused of trespassing the conservation area which is located adjacent to the company?s concession area.

Conoco?s concession area was located outside the national park when Conoco received its production-sharing contract (PSC) from state oil and gas company Pertamina in 1987. But the government later expanded the national park's territory including some 150,000 hectares into the Warim block.

John said that the gas projects would be the engine of the regency?s economy in the future which would not only help solve the unemployment problem but also could become the economic engine of the regency. ?The government should, therefore, relocate the conservation area to allow the company to resume its gas project,? he added.

The Warim block is believed to contain gas reserves of more than 100 time the oil reserves in Natuna island. (*)