SKK Migas: Sele Raya?s problem to be discussed at provincial level

By Febry silaban

Upstream authority SKK Migas said the problem experienced by PT Sele Raya Merangin Dua (SRMD) in Merangin II block, South Sumatra will be discussed at the provincial level.

The Banyuasin (Muba) regency administration in South Sumatra has banned the operation of Sele Raya at the Lumbian well of the Merangin II block following a border dispute between the regency and neighboring Musi Rawas Utara regency, South Sumatra.

"It is true that Sele Raya has halted the construction of its production facilities (following the regent?s order). The problem will be discussed at the provincial level," Head of Public Relations Division at SKK Migas Rudianto Rimbono told Petromindo.com.

The agency hopes the problem can be soon settled, ?so that the upstream oil and gas activities could soon provide maximum benefit to the country?, he said.

The Merangin II block was awarded to Sele Raya in Oct. 2003. Sele Raya operates the block with 42.5 percent of interest, while the remaining is held by Merangin B.V. (37.5 percent) and Sinochem Merangin Ltd. (20 percent).

Besides the Merangin II block, Sele Raya also operates two other oil blocks ? Belida oil block in South Sumatra and Blora block in Pati, Central Java, which are now on exploration stage.

Editing by Johannes Simbolon