Pertamina EP plans to relinquish working areas

By Godang Sitompul

Pertamina EP (PEP) plans to return back to the government a number of its oil and gas working areas with combined acreage of about 25,000 km2, most of which located in Jakarta and East Java.

Pertamina EP President Director Syamsu Alam said that the company has decided to relinquish the working areas because they?re either considered to be operationally not possible for development, or have high geological risk.

?There are a number of working areas that are considered to have very high geological risk, and operationally not possible to be developed. We?ll soon return the working areas back to the government as part of the PEP relinquishment program,? Syamsu told Petromindo.com.

He pointed out that the company?s working areas in Jakarta (including area around the National Monument) and Surabaya are ?operationally very difficult to be developed.?

He said that the company is seeking the company?s shareholders and board of commissioners approval for the plan. He declined to provide further details. ?The details (will be provided) if there has been approval from the shareholders,? Syamsu ended.

Editing by Reiner Simanjuntak