The Management of Petro China Int. Jabung Ltd. Expected that operation
suspension of 14 oil well by the Regency Authorities of East Jabung be settled.
The point was if sealing was imposed for a few days, the sealed wells must be
shutdown for the sake of safety and for environmental protection. The shutdown
might cause loss of oil production of 433 barrels per day, and gas production
of 11,011 mmscfd which was worth USD 220,166 dollar per day.
“Sealing of oil wells makes it
difficult for the operators the make routine inspection and monitoring of oil
wells, so we cannot make sure that the wells are in safe condition to operate.
We expect the wells would not be shut down because it would cause loss of oil
and gas production, which means loss for the state” Novie Latanna,
Communication Manager of Petro China Int. Indonesia, was quoted as saying.
While expecting that sealing’s were not continued, Novie was expecting
that the local government approved application permit submitted by SKK migas
and petro china since 9 months ago. “It should be borne in mind that petro
china jabung is not the owner of oil gas resources in block jabung. We are contractor
appointed by the government of RI to run exploration and production of oil gas
in block jabung under the supervision of SKKMigas. The oil well being sealed
are not ours, it’s the state’s asset” Novie remarked.
About some points which posed as background in the case of oil well
sealing by the provincial government, among others demand for gas allocation
amounting to 5 MMSCFD for the regency of tanjung jabur regency, the management
of petro china confirmed that the demand was already approved by SSK MIGAS and
which were now in process.
In accordance with the roadmap agreed by petro china, SSKMIGAS, Local
Authorities of tanjung jabung timur and BUMD tanjung jabur timur on February
28, 2013, now due diligence was underway on BUMD appointed by the government.
If all process ran well in accordance with the time frame agreed in the road
map, gas trade agreement was expected y November 2013. “We expect support and
cooperation by the local government and BUMD of Tanjab Timur in the preparation
process of gas supply, so the expected gas supply could be realized” Novie
remarked further.
Corporate Social Responsibility
The management of petro china international [jabung] Ltd stated that
SSKMIGAS with petro china stacked to their commitment to continue 14 CSR missions
mutually agreed by the local government for budget year 2012-2013.
The 14 programs were among other the development plan the public health
centers [puskesmas] schools, place of worship, house renovation for poor
people, and building of roads, water treatment and electricity supply.
“We expect people understands that execution of those programs takes
time. There are programs which are now accomplishes, but there are those still
at tender stage, but they are expected to be entirely accomplished. Sealing of
some gas wells in the exploration zone has nothing to do with CSR execution. So
although some wells are still being sealed, SSKMIGAS with petro china stick to
their commitment to carry out the program aimed at helping the communities”
Novier Latanna, communication manager petro china Ltd Int companies in
Indonesia was quoted as saying.
About contribution by the third party which was once asked for by the
govt. of the Tanjung Jabung Timur, it was already cancelled by letter of the
regional secretary no 973/1028/DPKAD/2013 re: classification of invoice of
third party year 2012 . The regency authority of Tanjung Jabung Timur since
Friday [24/5] had sealed 14 oil and gas wells in block Jabung. (SS)
Business News - May 31, 2013
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