Pertamina to start drilling despite the absence approval from BP Migas

State oil and gas firm PT Pertamina said that it would conduct drilling activities at its wells despite the absence of formal approval of plan of development (POD) and work program and budget (WP&B) from the upstream oil and gas regulatory body, BP Migas, Bisnis Indonesia reported Monday.

Pertamina?s president director Ari H Soemarno said in Jakarta last week that the company has asked permission for conducting drilling activities without having to wait for the approval of POD and WP&B from BP Migas because otherwise the company would not be able to run its well drilling program on schedule.

?We have received support from Minister of Energy and Mineral Resources and Vice President,? he said.

Under the plan, Pertamina has targeted to drill as many as 140 wells in 2007, with at least 12 wells drilled per month.

?Up till the end of January, Pertamina has yet to start drilling a well because we have not yet received a formal approval (regarding the POD and WP&B) from BP Migas,? he said.

Due to the delay in the approval, Pertamina has to drill 24 wells next month, which according to Ari, will place a burden on Pertamina in regards to the number of wells that the company has to drill.

Pertamina has allocated Rp10.15 trillion for the upstream activities for 2007, much of which will be earmarked for funding the drilling activities.

Under the Law no 22, Year 2001 on the Oil and Gas and Government Regulation No. 42, year 2002 on BP Migas, any plan of development and work program are subject to an approval from BP Migas as a form of government?s control to contractors. (*)