Unocal ready to report to Bontang administration about rigs

PT Unocal Indonesia Company, which is the subsidiary of American oil and gas firm Unocal Corp, has voiced readiness to submit all data about the existence of its three oil and gas rigs in Bontang, East Kalimantan to the local administration, local daily Kaltim Post reported on Saturday.

The paper quoted vice speaker of the Bontang regency council Sewaya Hali as saying on Friday that the company had voiced readiness to submit the data during a recent meeting with the regency?s councilors.

?We (the regency councilors) met with Unocal?s management in Balikpapan two days ago. They said they were ready to give accurate data about the location of the rigs and the lifetime of the rigs. We are waiting for the company to send the data via facsimile transmission,? Sewaya said.

Earlier, the regency councilors lambasted Unocal for not reporting the existence of its oil and gas rigs in the Melahin, Kedindingan and Serang areas to the regency.

The councilors said that since Bontang had been separated from the Kutai Kertanegara regency in 1999, the three rigs, which they claimed were located in the waters of Bontang?s administrative area, should be reported to the administration.

Some councilors suspected that certain parties have tried to prevent Bontang from receiving shares in the oil and gas produced by Unocal in the three areas.

They said if Unocal confirmed that the rigs were located in the regency territory, the regency would receive a higher share in the government?s earnings from the company?s oil and gas production in the areas in accordance with the Intergovernmental Fiscal Balance Law No. 25/1999.

According to the councilors, Unocal produces 5,000 barrels of oil per day and 15,000 barrels of oil equivalent per day at the three locations. (*)