West Maluku Tenggara demands stake in Masela block

By Godang Sitompul

Minister of Energy and Mineral Resources Jero Wacik has been urged to allow PT Tanimbar Energi, a company owned by the West Maluku Tenggara Regency administration, to be included in managing a 10 percent participating interest in the gas-rich Masela block, which is located in the regency.

The demand was expressed by West Maluku Tenggara Regent Bitzael S. Temmar in a September 28 letter to the minister.

?In determining the participating interest, the participation of the local administration in managing the participating interest should be considered, in this case the Administration of West Maluku Regency as authority of the producing region,? said the letter, a copy of which was obtained by Petromindo.com.

In the letter, Bitzael also criticized the Maluku Provincial administration which has declined to meet with the regency to discuss the participating interest in the Masela block. The regency administration together with the local legislative council then set up a company called PT Tanimbar Energi, which will manage the regency?s stake in the block.

Japan?s Inpex Corp holds a majority stake in the block. Exploration results reveal a rich gas reserves in the Masela block, estimated at around 14 trillion cubic feet, considered as the largest in the eastern part of Indonesia.

Editing by Reiner Simanjuntak