Navy to guard oil, gas projects in Malacca Straits

Indonesia's navy will guard offshore crude oil and natural gas projects in the country's waters and the Malacca Straits from possible terrorist attacks and help ensure ships don't damage underwater pipelines.

Kardaya Warnika, Chairman of upstream authority BPMIGAS, on Wednesday signed a five-year agreement with the country's navy on behalf of oil companies operating in Indonesia, he told reporters.

The Malacca Strait is used by more than 50,000 vessels a year, carrying a third of world trade and half its oil supplies.

Recent armed attack on vessels, including a 2 million barrel oil tanker and methane-gas tanker whose captain and chief engineer were kidnapped, have raised concern that pirates may have returned to the area after a two-month lull following the Dec. 26 tsunami.

"In the first stage the navy will help secure the area with most shipping traffic between the Batam island and Singapore," said Kardaya. "We have gas and oil pipelines in the area so the navy will help prevent ships from damaging pipelines."

Although pirate attacks on ships worldwide fell 26 percent last year to 325, violence increased. Crew deaths rose 42 percent according to the International Maritime Bureau, part of Paris- based International Chamber of Commerce. About 29 percent of the world's attacks took place in Indonesian waters.

"We will help secure survey activities, guard oil rigs and neutralize mines in areas being explored by oil companies," said Indonesian navy chief Slamet Soebijanto. It will "provide a sense of security to the oil companies and their expatriate staff."

Some of the mines in the area were laid during the Second World War.(*)