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