Illegal activities seen as major headache for PSCs in southern Sumatra

By Godang Sitompul

Illegal oil production at suspended wells, illegal tapping of crude from pipelines and blockades by local communities have been seen as the major obstacle for oil and gas production sharing contractors (PSCs) in the southern part of Sumatra throughout 2013, according to the upstream oil and gas authority SKK Migas.

The SKK Migas has conducted persuasive approaches to help deal with the situation.

Head of the southern Sumatra office of SKK Migas, Tirat Sambu Ichtijar cited as an example that illegal drilling activity at a well at the Corridor Block, a working area of ConocoPhillips, in Musi Banyuasian, South Sumatra, a couple of months before the end of 2013, had caused a fire incident.

?This was because the diesel engine used by the illegal miners to drill the wells exploded, causing huge fire at the well. The illegal miners ran away immediately following the fire,? Tirat told Petromindo.com Monday.

Fortunately, the fire had been put off, thanks to cooperation between the local villagers and ConocoPhillips, he added.

Another example is illegal tapping of crude from pipeline owned by PT Pertamina EP in the Tempino-Plaju route in South Sumatra which also emerged in 2013. However, effective cooperation between the Indonesian Military and the Police have been able to curb the illegal activities, Tirat explained.

?The crude stolen from Pertamina EP was believed to have been transported to Tangerang, Baten, where an illegal refinery facility is present,? he said.

Meanwhile, in Jambi, Tiras said, there were demands from a non-governmental organization to close down the oil and gas wells operated by PetroChina, and that the wells must be handed over to the local people. Certain officials of the Ajima NGO reportedly were unsatisfied with the deal between the Jambi administration and PetroChina.

Fortunately, the SKK Migas has managed to stop acts of the NGO from escalating into a bigger problem.

Editing by Reiner Simanjuntak