Jakarta, June 4 (Antara) - The local government of Tanjung Jabung Timur
District, Jambi province, still sealed 26 oil wells in 12 locations of
the Jabung Oil Block because the operator, PT PetroChina International,
failed to secure location permits.
Regional Government Secretary of Tanjung Jabung Timur (Tanjabtim)
District Sudirman said on Sunday the local government would remain to
seal the 26 oil and gas wells if PetroChina did not meet the
requirements for obtaining location permits as set by the local
government.
Sudirman said that the Tanjabtim regional government suffered Rp3.5
trillion in losses a year as PetroChina had operated the oil and gas
wells since 2006 without location permits.
He said that the Tanjabtim government would not issue the permits if
PetroChina did not meet the local government's requirements, such as the
realization of corporate social responsibility (CSR) and contribution
to the local people in accordance with Tanjabtim Bylaw No. 55/2011.
"We are set to enforce the regulation. We have reminded them about the
permit, but they refused to hear," Tanjabtim District Head Zumi Zola
said last week.
The district administration sealed the wells as the company did not bother to seek the permit, he added.
Actually, PetroChina has applied for the permit, yet the local
government considered the company still does not meet certain
requirements.
"With regard to location permit, PetroChina hopes that the local
government would soon issue it. The application dossiers have been
submitted to the local government since August 2012," Novie Latanna,
Communication Manager of PetroChina International Companies Inc.
Indonesia, was quoted by jpnn.com media online as sayting.
Novie said that PetroChina was entrusted by the (central) government to
exploit the oil and gas reserves in the Jabung Oil Block based on a
production sharing contract.
PetroChina is of the view that the Jabung oil Block is a state
asset. The company is entrusted to operate it under the supervision of
the Upstream Oil and Gas Regulatory Special Task Force (SKK-Migas).
"In carrying out its operations, PetroChina, as a contractor under the
supervision of SKK-Migas, always abides by the law and regulations in
force, particularly with regard to permit," Novie said.
Besides for oil and gas drilling location permits, PetroChina also has
met other requirements, among others, on environmental impact analysis,
environmental management and monitoring schemes and drilling licenses
(POD/POP).
"We have lost our location permits for old wells so that in 2012 we
asked for 'pemutihan' (process of legalization)," Novie said.
For expansion, PetroChina has not received location permits for several
wells and the company has never carried out activities on wells which
have not secured a permit, according to the company's communication
manager.
The request for location permits for 10 location was submitted by the
defunct BP Migas (Upstream Oil and Gas Regulatory Body), now SKK-Migas,
on July 13, 2012. Up to now, the local government has only approved two
of them.
Novies said that some of the wells sealed by the local government were
old wells drilled before 2002, or before PetroChina took over the Jabung
Oil Block.
SKK-Migas Secretary Gde Pradnyana said meanwhile the local
government's step to seal the oil wells was groundless and caused losses
to the state. "We regret this groundless action," Pradnyana said.
Novie Latanna added that the sealing of the oil well caused potential
losses of 433 barrels of oil per day and 11.011 million cubic feet of
gas per day.
"The value of potential oil and gas loss can reach US$220,166 per day,"
Novie said adding that the sealing of the well also stopped the
maintenance of the oil resource and gas.
"We hope that the permit will soon be issued soon and the seals will also be removed immediately," Novie said.
Pradnyana added that President Susilo Bambang Yudhoyoo had issued
instruction No.2/2012 ordering all sides, including district heads, to
support efforts to increase the country's oil output.
"But, the local administration of Tanjabtim District, even sealed off
the wells whose permits should have been issued by itself," Pradnyana
said.
Tanjabtim District Head Zumi Zola said the local government sealed the
wells because the foreign company ignored certain conditions in applying
for the location permit.
"We are upholding regulations in force. We have asked them to do so but it has not," he said.
Assistant II of the regional government of Tanjabtim, Aripudidin said
that after conducting a field check the local government found tens of
wells which had no location permits.
The company has hundreds of oil/gas wells, but 12 of them have been
without location permits for more than 10 years, Aripuddin said.
Zumi
Zola reminded the company of its commitment about social
responsibility (CSR) especially preservation of the environment.
Zumi Zola said he regretted the failure of PetroChina in meeting its commitment about social responsibility since 2012.
He cited PT PetroChina has promised to build and drill wells for clean
water supply in the area of its operation, but the promise has not come
to reality after so long.
"We no longer want to hear more promises. The sealing of a number of wells is only a warning," he said.
The district head has ordered for the re-evaluation of the location permit for all wells owned by the company.
In the meantime, Constitutional Court expert Helmi of the University of
Jambi said that PT PetroChina International's pressure on local
government to remove the seals on its oil wells that had not yet
received exploitation permits was a form of arrogance.
"If the pressure on local government comes from PetroChina's
management, it is a form of arrogance because the wells are sealed for
having no location permits yet," Helmi said on Sunday.
It was reported that PT PetroChina had urged the local government to remove its seals on more than ten oil wells.
The
local government, after a certain consideration, has the full authority
to examine the case and to make a decision regarding whether or not to
grant a location permit for PetroChina.
The local government, according to Helmi, also has the authority to seal off the wells.
The sealing of the wells is a form of administrative sanction taken by
the local government against the foreign investor operating in its area.
"This matter is regulated through Law No. 32 / 2004 and Government
Regulation (PP) No. 38 / 2007 on Energy and Mineral Resources," said
Helmi.
He said that it was not appropriate for any party to view the matter
from the negative perspective but from bigger government interest for
its people.***3***
(T.A014/b003/B003)
(T.SYS/A/A. Abdussalam/Bustanuddin) 04-06-2013 20:00 |
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