Jambi, Santa Fe agree to end conflicts

The United States-based Santa Fe Resources and the provincial administration, agreed to end their conflicts in a meeting last week and promised to consult each other in dealing with a problem which might arise in the future, Sriwijaya Pos reported on Monday.

The American oil and company, which operates through its subsidiary PT Santa Fe Resources Jabung Ltd in the province, had asked for a apology during the meeting and the provincial administration, in return, promised to provide any assistance needed to support the company's operation in the province.

"All the problems related to Santa Fe Resource have been settled? it is all over now," the governor of Jambi, Zulkifli Nurdin said.

The local government called Santa Fee recently to stop the installation of its gas pipelines in Tanjab Timor regency in the province for refusing to pay a fair compensation for the land it uses to the local people.

Zulkifli Nurdin said besides nor paying the compensation money to the local residents, the company had been also found of illegally cutting trees in the forests along its gas pipeline project.

Santa Fe, one of state owned oil and gas company Pertamina's production sharing contractor, an oil and gas block in the province, denied the charge. The company has found 49 oil wells in the block, each with an estimated production capacity of 10,000 barrel per day. But the company has only carried out production activities at two of the oil wells, with production capacity of 20,000 bpd. (*)