Santa Fe asked to stop pipe installation works

The provincial government in Jambi has called on oil company PT Santa Fe to stop the installation of its gas pipelines in Tanjab Timor regency for refusing to pay a fair compensation for the land it uses, Sriwijaya Pos reported on Wednesday.

Governor Zulkifli Nurdin said on Tuesday that besides refusing to pay the compensation money to the local residents, the company had been also found of illegally cutting trees in the forests along its gas pipeline project.

"The company has never asked for a permit from the local government to cut the trees. The company never reported any thing," he said.

Santa Fe, one of state owned oil and gas company Pertamina's production sharing contractor, an oil and gas block in the province. The company has found 49 oil wells in the block, each with an estimated production capacity of 10,000 barrel per day. But the company has only carried out production activities at two of the oil wells, with production capacity of 20,000 bpd. (*)