PetroChina?s exploration license faces problems

PetroChina?s exploration license at Sukowati-7 well and Sukowati-8 well in Kapas subdistrict, Bojonegoro, East Java may be cancelled or to be moved to different place because the two wells are located in the densely populated village, Koran Tempo reported Monday.

? The right term (in regards to this) maybe is not cancelled but in a 'pending' status," Bojonegoro regency?s spokesperson Joni Nurharyanto said in Bojonegoro on Sunday.

The administration received the PetroChina?s exploration license just several days ago. Currently, Bojonegoro administration?s urban planning department is studying the license?s terms and conditions.

The decision on this issue will be determined by the result of the urban affairs department?s study. They can be moved to other locations several hundreds meters away from original site or completely moved to a different place. Certainly, it was not the place that PetroChina sought,he added

Meanwhile, PetroChina?s public relations officer Kemal Nezar said his company understands the Bojonegoro?s decision to postpone the exploration activities at Sukowati-7 well and Sukowati-8 well. The company has already been informed.

?We will comply with the existing rules,? Kemal said.

On late July 2006, a ?gas kick? incident occurred at PetroChina East Java?s Sukowati-5 oil well during drilling work but a week later PetroChina resumed drilling at Sukowati-5 after successfully overcome the problems.

PetroChina in a joint venture with state oil and gas company Pertamina to operates the Sukowati field in the regency. The field started operation in August 2004 with an output of 7.000 barrels per day (*)