Unocal to commence gas project worth $700m in East Kalimantan

Oil and gas contractor PT Unocal Indonesia Corporation of the United States will start its gas project worth US$700 million in East Kalimantan, according to the president of state oil and gas firm Pertamina, Baihaki Hakim.

Speaking to journalists after accompanying Unocal president Roger C. Beach in a meeting with President Abdurrahman Wahid, Baihaki said that the gas field, when it starts its production, will produce up to 20,000 cubic feet of gas per day.

Unocal has been operating in Indonesia - mostly in East Kalimantan - for the past 30 years, and has invested a total of $5 billion in the country.

Earlier, Kompas reported that Unocal had caused environmental pollution in Tanjungsantan, Marangkayu subdistirct in Kutai district, East Kalimantan.

Based on a report from Sucofindo Samarinda's laboratory, water allegedly containing Unocal waste has been polluted beyond the tolerable level.

Unocal has polluted its surrounding area, according to Sri Indah Wibi of the Indonesian Environmental Forum (Walhi) as well as M. Ramli and Chalid Mohammad - both from the The Mining Advocacy Network's East Kalimantan branch. (*)