Pertamina starts drilling works in Rembang

The production unit of the state oil and gas company Pertamina in Cepu, Central Jakarta has started the drilling works on a new oil well in Kumendung village, Rembang after settling all the compensation payment to local residents, Suara Merdeka reported on Thursday.

Secretary of the local government's office Hamzah Fatoni said on Wednesday the state oil and company had spent about Rp 150 million for the compensation of about four hectare land to the residents.

He said that the oil and gas company had also built a new road to bring drilling works to the new oil well but the price of the land for the road was lower than the Rp 5,000 per square meter for the soil used for drilling activities.

According to him, the local residents were happy enough with the land compensation because the payment was based on the market price. (*)