Regency administrations demand rights to operate marginal oil wells

A number of regents and mayors from oil and gas producing regencies have demanded the state owned oil and gas company Pertamina to give them the rights to operate marginal oil and gas wells in their respective territories, Media Indonesia reported on Saturday.

The demand was made by 11 mayors and regents, which are Bengkalis, Sidoarjo, Sorong, Teluk Bintuni, Musi Banyu Asin, Karawang, langkat, Tarakan, Kutai Timur, Samarinda and Lampung Timur, during a meeting between the consultation forum of oil and gas producing regencies (FKDPM) and the speaker of the House of Representatives (DPR) Agung Laksono in Jakarta on Friday.

In according to the new oil and gas law, Pertamina no longer had the rights to control the country's oil and gas concession areas. "Pertamina should therefore surrender its rights to operate its margin oil and gas wells to local governments," the chairman of the forum, Alex Nurdin said.

Alex, who is also the regent of Musi Banyu Asin regency, South Sumatra, said that in addition, Pertamina should also give all the scrap and other old equipment of the marginal oil and gas wells to the local government. (*)