Vico Indonesia signs joint land utilization deal with Singlurus Pratama

Oil and gas firm Vico Indonesia on Monday signed a joint land utilization agreement (PPLB) with coal miner PT Singlurus Pratama, which arranges how the two companies will utilize 24,760 ha of overlapping concession.

Vico Indonesia first obtained the concession in 1968, which was renewed in 1998. Meanwhile, PT Singlurus Pratama obtained a coal mining contract on the area in 2009.

?The objective of the PPLB is to manage the joint activities of oil and gas operation and coal mining (in the overlapping concession) so as to ensure safety and protection of (their) respective assets,? said Budi Agustyono, representative of upstream oil and gas regulator BPMigas for Kalimantan and Sulawesi regions.

Budi said that according to Chapter 36 of the 2001 oil and gas law, parts of oil and gas concession not utilized for oil and gas activities can be transferred to other parties following recommendation by the Ministry of Energy and Mineral Resources. The signing of the PPLB is part of the conditions to obtain that recommendation, Budi said.

Parluhutan Sibuea, Vice President Health, Safety, Environment and Operations Integrity of Vico Indonesia said that there were about 99 coal miners operating in Vico?s concession in East Kalimantan. So far, Vico has signed PPLB with about half of them. (bernard)