URGENT: Two PSCs in Papua in dispute over seismic survey

Thursday, January 12 2012 - 02:22 AM WIB

By Godang Sitompul

Upstream authority BPMIGAS has instructed BP Indonesia, the operator of Tangguh LNG project, not to hamper exploration activities of Malaysian firm Genting Oil & Gas Limited in Papua near its working area.

?Genting Oil claims that it has been prohibited by BP Indonesia to conduct seismic survey near BP operation area in Papua. Actually, the seismic is quite far which is 3 kilometers away,? Hardiono, Deputy Chairman of BPMIGAS told Petromindo.com.

Hardiono said there is tremor as a result of the seismic survey. However, the impact is only felt as far as 500 meters. ?There is an explosion during the seismic. That is why they (BP) prohibited the survey conducted near its operation area,? he said, noted that Genting has informed BPMIGAS over the situation.

He said BPMIGAS has sent clear message to BP not to prohibit the Genting seismic. ?We will sent formal instruction.?

In response to the situation, Dharmawan Samsu, BP Indonesia Country Head, said the company prohibits Genting to conduct the seismic activities near its operation for safety reason.

?BP puts safety and operational risk management at the heart of the company. While we acknowledge other PSCs (production sharing contractors) exploration activities in Papua, such activities must not put the safety and integrity of our operations at risk,? Samsu told Petromindo.com.

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

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