House supports E. Java?s desire to hold interest in oil fields
Thursday, February 27 2003 - 01:51 AM WIB
?We support their efforts to hold a working interest in oil fields,? House member Maksum Saeladry told Petromindo.Com after attending a nearly four-hour closed door meeting between House Commission VIII in charge of energy and mineral resources and East Java governor Imam Utomo and senior executives of oil and gas producers BP Indonesia and Mobil Cepu.
Imam submitted their request to the House in the meeting.
Maksum said the current oil and gas law, which became effective in 2001, allows provincial administrations to hold a working interest in oil and gas fields.
BP Indonesia operates Kangean Block offshore East Java, while Mobil Cepu, an Indonesian unit of ExxonMobil Corporation, operates Cepu Block, which is partly located in Bojonegoro regency in East Java.
Meanwhile, commission chairman Irwan Prayitno said that BP and ExxonMobil officials attending the meeting gave a positive response to East Java?s request. ?They said it is not a problem to cooperate with the province especially in this era of regional autonomy,? he told Petromindo.Com.
Irwan said however that they did not discuss at length BP Indonesia?s and ExxonMobil?s request for extension for 20 years of Kangean and Cepu block contracts. The contracts will expire in 2010.
His commission would discuss the contract extension issue with BPMigas chairman Rachmat Sudibyo in a hearing Thursday (today), Irwan said. (leo)