Pertamina should consult House over plan to extend BP's East Java contract: Legislators
Monday, June 3 2002 - 05:23 AM WIB
?The House would be disappointed if Pertamina does not consult us about its plan to extend the contract,? said Priyo Budisantoso from House commission VIII in a hearing with Pertamina president director Baihaki Hakim and other top leaders of the company. The commission is in charge of energy and mineral resources affairs.
Another commission member, Nur Hasan, said: ?We do not want to see Pertamina extending BP?s contract without approval from the House.?
Priyo and Nur are from Golkar Party and National Awakening Party (PKB), respectively.
Existing oil and gas law entails that Pertamina should consult the House about its plan of signing new oil and gas contracts or contract extension.
BP Indonesia had asked Pertamina to renew its contract for operating the Kangean gas block in East Java, which covers Pagerungan and Terang Sirasun fields. The contract will expire in 2010.
Gas production from the Pagerungan field has dropped to between 300 million cubic feet per day (MMCFD) to 240 MMCFD. This has caused serious shortage of gas supply for East Java?s household and industrial users.
Pertamina?s and BP?s officials said developing the Terang Sirasun field is the best solution to cope with gas shortage in East Java.
BP had been given exclusive rights to supply gas to East Java from its Kangean block. (Godang)