URGENT: BPMIGAS has received clarifications on Papua seismic issue

By Godang Sitompul

Upstream authority BPMIGAS has received clarification from BP Indonesia, the operator of Tangguh LNG project, that it has never prohibited Genting Oil & Gas Limited to conduct seismic activities near the Tangguh LNG project.

?We have asked clarification from BP and BP made it clear that it did not prohibit Genting (to conduct 3D seismic survey). We will further seek clarification from Genting Oil,? BPMIGAS Deputy for Operation, Rudi Rubiandini, told Petromindo.com

Rudi made the statement as a follow-up of earlier report that Genting Oil, a Malaysian firm, claimed that it has been prohibited by BP to conduct required seismic survey near BP operation area in Papua.

Spokesperson of BPMIGAS, Gde Pradnyana said BPMIGAS has received explanation from BP, stating that it has no dispute with Genting Oil. ?What happen is that there is a need for better coordination between Genting and BP, so that each party can carry on their activities while putting SHE (safety, health and environment) as the utmost important aspect,? said Gde, citing BP statement.

BP Indonesia has downplayed the seismic issue reported by Petromindo.com earlier. BP, said Gde, has good relationship with Genting Oil. BP has provided technical assistance and environment assessment analysis to Genting Oil. BP has also recommended some experts and workforces that it employed when it conducted survey at Western Berau Seismic to become crew of Genting Oil during the seismic survey.

In addition, Genting sometimes conducted joint meeting to share information. BP has told BPMIGAS that it still has a good relationship with Genting, said Gde.

Separately, BPMIGAS Vice Chairman, Hardiono, said that his office plans to summon the two parties this week to resolve the issue. BPMIGAS will ask Genting what kind of seismic activities that it is to conduct near BP working area, and ask BP what type of facilities that are located near the Genting seismic activities.

The scenario is that after the clarification BPMIGAS would issue a letter, stating that Genting Oil can carry on its seismic activities, said Hardiono.

Genting Oil is conducting 3D seismic survey on 200-km2 (surface footprint) of 3D seismic at its Kasuri PSC block, West Papua. Genting has 100 percent stake in the block, which was awarded in 2008. Genting operates the Kasuri block through its unit, Genting Oil Kasuri Pte Ltd.

BP is the operator of the Tangguh field, holding a 37.16 percent stake in the project. Other partners are MI Berau B.V. (16.3 percent), China-based CNOOC (13.9 percent), Nippon Oil Exploration (Berau) (12.23 percent), KG Berau/KG Wiriagar (10 percent), LNG Japan Corporation (7.35 percent) and Australia-based Talisman (3.06 percent).

Editing by Roffie Kurniawan