Pertamina EP concerned over illegal drilling in Wonocolo

By Febry Silaban

PT Pertamina EP (PEP), a subsidiary of state owned oil and gas firm PT Pertamina (Persero), has been increasingly concerned over activities of illegal drilling at its working areas in Wonocolo, Bojonegoro Regency, East Java province, according to a top official of the firm.

"The activity of illegal drilling has been going on for a long time and is now on the rise. The drilling occurred in the working area belonging to PEP, which overlaps with the old wells, which have been handed over to local people for exploitation" PEP's President Director Andriansyah told Petromindo.com.

PEP has allowed the people grouped in rural cooperatives (KUD) and local government-owned enterprises (BUMD) to extract oil from the old wells provided they use simple technology. However, they now use sophisticated technology similar to the ones used by Production Sharing Contracts (PSC).

"They took shelter under the old wells contract but do activities like PSC contractors," he said.

Andriansyah said he has been informed that certain companies or investors are piggybacking their activities but he refused to name them because the information still needs verification.

PEP is still using persuasive approach to sole the problem by inviting the locals to conduct legal activity, according to Andriansyah.

"We have often reported the incident to the local government but the follow-up actions taken in response are not satisfactory enough. Hopefully in the future there will be a change," he pointed out.

He noted that his company's intention is to save the country?s assets and protect the local traditional oil exploiters.

Meanwhile, an industry source told Petromindo.com that the company that performs the illegal drilling is linked to military figures.

Editing by Johannes Simbolon