E. Java regencies eye oil block stake
Rangga D. Fadillah, The Jakarta Post, Jakarta | Mon, 06/27/2011 9:38 PM
The administrations of Bangkalan and Gresik regencies in East Java say they want to be given a 20.7 percent stake in the oil-rich West Madura offshore (WMO) block.
The regencies established a joint enterprise, PT Gerbang Oil & Gas Jatim WMO, to support their bid.
“We've never been involved in the formulation of new production sharing contracts for the WMO block. According to the Constitution, natural resources have to be utilized to improve public welfare. Therefore we want a 20.7 percent stake in the block,” Bangkalan regent Fuad Amien Imron said in a press statement distributed on Monday.
Faud said neither regency had received a reply to letters sent to the Energy and Mineral Resources Ministry on May 25 requesting that they be given the stake.
The WMO block is currently operated by state oil and gas firm PT Pertamina, which owns an 80 percent stake, while 20 percent is owned by Korea-based Kodeco Energy.
