T

he East Java administration threatened Tuesday to block access to the West Madura Offshore (WMO) block to protest the central government not granting them a part in the management of WMO oil and gas resources.

East Java Deputy Governor Saifullah Yusuf said the provincial administration would not provide exploration permits to Pertamina or Kodeco in the block in the Madura strait. It would also provide full support for local residents who rejected oil and gas exploration, he said.

“We will hold a hearing with residents and convince them that business activities in their area have exploited the natural resources and the people in East Java are deprived of the resources,” Saifullah said Tuesday.

The central government, through Energy and Mineral Resources Minister Darwin Zahedy Saleh, decided to hand over 80 percent of the shares in the WMO block to Pertamina on May 5.

The remaining 20 percent were granted to Kodeco Energy, a South Korea-based oil and gas company that operated the block from May 8, 1981, to May 8, 2011. The China-based China National Oil Offshore Corporation (CNOOC) had withdrawn earlier.

The WMO management dispute escalated after Indonesian Resources Studies (Iress) director Marwan Batubara reported indications of corruption to the Corruption Eradication Commission (KPK) in the transfer of WMO participatory rights from Kodeco to PT Sinergindo Citra Harapan and CNOOC Madura Ltd. to Pure Link Investment Ltd. on April 12.

The WMO oil and gas block, spanning 1,615 square kilometers, produces around 13,400 barrels of oil per day and 138 million cubic feet of gas daily. The gas is piped to state power company PLN power stations, Petrokimia Gresik and a number of industries in East Java.

Saifullah said the provincial administration had prepared a number of alternatives if the central government still refused to provide management shares in the WMO, including asking for 40 percent of the shares from Pertamina, failing which Pertamina and Kodeco would not be able to carry out exploration at the block.

“We will ask for shares from Pertamina, failing which they cannot operate here. That’s why the WMO must be returned to the people of East Java,” he said.

He added that proceeds from the profit-sharing would later be handed over to the East Java administration, Bangkalan Madura regency administration and the Gresik regency administration, and would be used to improve people’s welfare, especially in Madura.

Member of Commission D on development affairs at the East Java legislative council, Agus Maimun, said the legislature had recommended that the provincial administration close all facilities, including roads and other supporting facilities funded by the provincial budget.

“We will boycott the WMO exploration because it has damaged public facilities funded by the provincial budget and is unable to improve people’s welfare. The access closure to the oil and gas block is aimed at persuading the government to pay attention to the welfare of people living in the area,” Agus said.

Agus said his commission had proposed the provincial administration work together with local investors to manage the WMO and not involve Kodeco.