Jakarta approves Bontang claim on oil, gas fields

The central government in Jakarta has approved the claim of the Bontang administration in East Kalimantan over two oil and gas fields operated by oil and gas firm PT Unocal Indonesia, a subsidiary of American oil and gas firm Unocal Corp.

The approval was given following a study and direct visit by a team from Jakarta to the fields, the local Kaltim Post daily reported Saturday.

The decision will allow Bontang to enjoy part of the revenue obtained by the central government from the oil and gas operation.

Initially, Bontang claimed that three oil and gas fields called the Melahin, Kendidingan and Serang were located under its administrative area. But following intensive study, the Jakarta team which comprises of experts from the directorate general for regional autonomy, hydro oceanography office, and topography office, concluded that only the Melahin and Kendidingan fields were under the Bontang administrative area.

Each field produces around 15,000 barrels of oil per day, and 5,000 barrel equivalent of gas per day.(*)