Pertamina EP ends working area conflict with KPC

PT Pertamina EP, an upstream subsidiary of state-owned oil and gas company PT Pertamina, has finally resolved a tough overlapping permit over a working area in Sangatta, Kutai Timur Regency, East Kalimantan, with coal miner PT Kaltim Prima Coal (KPC), a unit of IDX-listed coal giant PT Bumi Resources Tbk.

The two companies signed an MoU on Sunday to end the conflict, allowing Pertamina EP to carry out exploration work at the Brajanata I well located on KPC?s coal concession area, Pertamina EP said in a statement received on Thursday.

Pertamina EP President Director, Adriansyah, said that the issue of overlapping working area has been one of the obstacles faced by the company in pursuing exploration programs. He expected that the agreement with KPC would set as an example for the company to soon resolve similar problem in other areas.

?With the signing (of the MoU), it means we can carry out exploration in the working area of PT Kaltim Prima Coal,? he said.

Adriansyah said that the Brajanata I exploration well has quite a huge potential estimated at 50 million boe, adding that successful exploration at the well would open opportunities at other exploration wells in Sangatta.

Editing by Reiner Simanjuntak