Oil wells off Seribu islands disputed

The Jakarta administration, the provinces of West Java and Lampung are disputing the control over oil resources off Seribu islands bordering the three provinces' territories, Media Indonesia reported on Tuesday.

Ali Rosi, the head of the mining office of the Jakarta administration, said in a seminar on Monday that all the three provinces had claimed the rights to control of the oil wells located at the sea border in anticipation of the implementation of the autonomy law next year.

The oil wells in the border area, which are at present directly controlled by the central government, will be overseen by provincial administration after the autonomy law is fully implemented. Under the new law, the province will receive part of the oil production, which is quite significant to support provincial budget.

Two oil-mining companies, PT Arco and PT Maxus are operating at the border area. PT Arco operates 79 off shore oil wells, while PT Arco operates 179 oil wells.

Ali said that the oil wells generated funds worth US$103 million a year, of which US$12.185 went to the Jakarta administration. But he warned that in the future, the central government should clarify the status of the oil resources in the bordering areas in order to prevent conflicts. (*)