Regency orders Sele Raya to stop operation
Tuesday, March 17 2015 - 02:09 AM WIB
The Musi Banyuasin (Muba) regency administration in South Sumatra has banned the operation of PT Sele Raya Merangin Dua (SRMD) at the Lumbian well of the Merangin II block following a border dispute between the regency and new regency Musi Rawas Utara, South Sumatra.
The block is located in three regencies, namely Musi Rawas, Musi Rawas Utara, both in South Sumatra province, and Sorolangun in Jambi province. Musi Rawas Utara, also known as Muaratara, was formerly part of Musi Rawas regency. Muratara was spun off Musi Rawaw by the government and the House of Representatives in 2013 in response to the demand for autonomy of the people in Muratara.
Both Muratara and Musi Banyuasin however remain in conflict over borderlines until now as there are oil operations in the border areas and both regencies are fighting for shares in revenue from the oil operations.
"We will still run production activities based on the regulations and permits that have been granted by the government," Legal and External Relations Officer of Sele Raya Bella Putri told Petromindo.com.
She explained that Minister of Home Affairs Regulation No. 76/2014 dated Oct. 17, 2014, which is an amendment to Minister of Home Affairs Regulation No. 50/2014 dated July 11, 2014, states Lumbian well is located in Muratara regency.
According to Bella, the Lumbian 1 well is located in an area which during exploration was administratively part of Sako Suban village, Batanghari Leko district, Musi Banyuasin regency, South Sumatra. Thereby, SRMD coordinated with and obtained permit from Musi Banyuasin regency for exploration. However, after the formation of Musi Rawas Utara, the well?s site is now administratively part of Tebing Tinggi village, Nibung district, Musi Rawas Utara regency. Thereby, SRMD is now coordinating with and has obtained permit from Musi Rawas Utara for activities at the well.
Asked to comment on the order issued by Muba regency prohibiting Sele Raya?s operations, Bella said the firm does not want to get involved in the dispute over the borderline.
"We just want to stay focused on carrying out the duty from the state to meet the national oil and gas production target and for that purpose, we need supports of all parties, both the level of central government and local government," she said.
Editing by Johannes Simbolon