Jambi bans Santa Fe from making new oil, gas sale contract

The Jambi administration has banned oil and gas firm Santa Fe from making new oil and gas sale contract with overseas on resources exploited in the province, according Jambi Governor Zulkifli Nurdin.

Zulkifli was quoted as saying by the Sriwijaya Post daily that the central government had given the green light for the province to develop a new oil and gas refinery operation, and that if Santa Fe continued to make new sale contract there would be no oil and gas resources left for the province.

"We have sent a letter to Santa Fe, and a copy sent to the ministry of energy and mineral resources as well as to Pertamina (state-owned oil and gas firm)," he said on Monday.

Zulkifli also said that he did not attend the signing ceremony of the gas sale contract between Pertamina and Singapore Power on Monday in Jakarta as a protest.

The paper said that part of the gas was produced by Santa Fe exploited in Jambi's West Tanjab and East Tanjab regencies.

He said that the gas contract with Singapore had not been coordinated with his administration. He demanded that future gas sale involving resources from Jambi should be coordinated first with the provincial administration, pointing out that the new autonomy law has given Jambi greater authority in managing its natural resources.

Zulkifli also said that President Abdurrahman Wahid had given his approval on the plans to develop a new refinery unit in the province.(*)