Seventy-seven blocks fail to meet exploration commitment

Seventy-seven blocks fail to meet exploration commitment

Jakarta Forum-ANTARA News - The Upstream Oil and Gas Regulatory Body (BP Migas) said 77 or 72 percent of 107 oil and gas blocks signing contracts between 2002 and 2008 have yet to fulfill exact commitment to conduct exploration.

Only 30 or 28 percent of them have met the commitment, according to BP Migas data made available on Monday.

Earlier at a meeting with Energy and Mineral Resources Minister Darwin Saleh here on Friday (May 15), BP Migas Chief R Priyono said 23 or 24 percent of the 77 blocks failed to meet the commitment because of contractors` internal problems.

The internal problems concerned among others operators` rights, finance, and holding companies` priorities, the data show.

Meanwhile, 15 or 16 percent of the 77 blocks failed to meet the commitment because of overlapping claims to land, 14 or 15 percent because of geological and geophysical factors, and 12 or 13 percent because of compensation problems.

The data show 10 or 11 percent failed to meet the commitment due to the absence of supporting equipment and services, 9 or 9 percent due to operational problems, 8 or 9 percent due to the absence of data and 2 or 2 percent due to special conditions such as those in Aceh and border areas.

Priyono said the contractors who failed to meet the commitment would be liable to fines. "We want them to conduct seismic and drilling activities," he said.

Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said her side would cooperate with regional governments to speed up land clearance for exploration projects.

"We will set up a team to resolve the problem," she said.

BP Migas spokesman Gde Pradnyana said under the existing regulation the contractors had three years to meet the commitment. If they could not do so they still have another three years.

"If during the period of six years they did nothing their contracts will be severed," he said.

Yet they still had a chance to meet the commitment because of external hindrance including public resistance, he said.

Gde said BP Migas would soon evaluate the 77 contractors. "If their reason is a short of fund we will terminate their contracts," he said.
(T.K007/S012/H-NG)
Editor: Priyambodo RH Source: Antara News

Posted in: BP Migas,Gas Regulatory,Upstream Oil