SKK Migas: Jabung block is vital state asset, protests move to seal off wells
Monday, May 27 2013 - 02:07 AM WIB
Upstream authority SKK Migas will quickly coordinate with the local police to help resolve the problem faced by PetroChina International (Jabung) Ltd following the move late last week by the administration of Tanjung Jabung Timur Regency in Jambi to seal off several oil and gas wells at the Jabung block.
Muliawan, Deputy for Operational Control at SKK Migas, said that the Jabung block is considered as vital national asset, and that the move to seal off the oil and gas wells could undermine national oil and gas production targets, and the safety aspect at the wells.
?The oil and gas wells are state assets, in which PetroChina is the operator working for the state. The representative of SKK Migas will coordinate things with the police to resolve the problems (affecting) the vital national assets,? Muliawan told Petromindo.com Monday.
The Tanjung Jabung Regency administration on Friday sealed off several oil and gas wells at the Jabung block, reportedly because PetroChina had not obtained the necessary location permit for the wells, which were previously operated by Santa Fe before PetroChina acquired the Jabung Block in 2002.
Separately, Communications Manager of PetroChina Int Companies in Indonesia, Novie Latanna lamented the lengthy delays in the issuance of location permit by the local administration for the development of the Jabung block.
Novie said that the company has applied for the location permit since nine months ago. She expected the permit could be issued soon to help meet national oil and gas production target.
?While the permit has not been issued, PetroChina has not carried out any drilling activities in the wells which have not obtained permit, neither exploration drilling (to look for new oil and gas sources) nor development drilling, in line with the directive from the local government,? Novie said in a statement obtained Monday.
Novie added that the issuance of the permit is also needed to end the recent seal off on several oil and gas wells at the block by the local administration.
Editing by Reiner Simanjuntak