Ministries talk about Conoco block's fate

The ministry of energy and mineral resources and the ministry of forestry are still in talks about the possibility for Conoco Indonesia Inc, a subsidiary of American energy firm Conoco Inc., to resume explorations at the Warim Block in Irian Jaya, which is partly located at the conservation zone.

"Permission from the ministry of forestry is needed for exploration in forestry area. No decision has been made (whether Conoco may continue its exploration in the conservation zone). Thus, Conoco has to wait," director general of oil and gas Rachmat Sudibyo told Petromindo on Thursday.

Conoco earlier said that it had suspended exploration activities at the Warim block following the government's move to declare that about 150,000 hectares of the block was situated at the Laurentz National Park.

Company vice president for development and relations AR "Dudung" Natanegara earlier told Petromindo that the company had spent US$182 million for exploration in the block since 1987, during which the company had found indications of "huge oil resources".

He said the block was considered to be located outside the national park when the company received its production sharing contract (PSC) in 1987.

But the government decided to expand the national park's territory in 1998 to also cover 150,000 hectares of the block, banning exploration activities in the area, Dudung said.

The United Nations of Educational, Scientific and Cultural Organization (UNESCO) put the national park on its World Heritage list on 1999 but, Dudung said, the agency had agreed to exclude the Warim block from the national park's area at the request of Conoco. (godang/epin)