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Bojonegoro administration, Pertamina to straighten up illegal oil field drilling

The Bojonegoro administration together with Pertamina EP “Asset IV Field” Cepu, a subsidiary of state-owned oil and gas company PT Pertamina, are set to discuss the straighten up of new oil field drilling activities deemed illegal in the regency

The Jakarta Post
Bojonegoro
Tue, March 17, 2015 Published on Mar. 17, 2015 Published on 2015-03-17T20:32:54+07:00

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T

he Bojonegoro administration together with Pertamina EP '€œAsset IV Field'€ Cepu, a subsidiary of state-owned oil and gas company PT Pertamina, are set to discuss the straighten up of new oil field drilling activities deemed illegal in the regency.

'€œThe regency administration together with Pertamina EP will discuss efforts to straighten up illegal new oil drilling activities that have continued to expand on Wednesday,'€ the Bojonegoro administration'€™s head of energy and mineral resources agency, Agus Supriyanto, said as quoted by Antara in Bojonegoro, East Java, on Tuesday.

He said the administration and Pertamina would invite officials from the Upstream Oil and Gas regulatory special task force (SKKMigas) and the Energy and Mineral Resources Ministry to discuss the control of new oil field drilling in a number of villages in Kedewan and Malo districts.

Agus said investors carried out the new oil field drilling activities without permits, such as environmental impact analysis (Amdal) permits. Recent illegal drilling of several new oil fields even had caused environmental damages.

'€œThey fell down many jati trees (a kind of hardwood tree) in the drilling areas. Crude oil spills have also polluted the areas,'€ said Agus.

An official with Pertamina EP '€œAsset IV Field'€ Cepu, Central Java, Heru Budiarso, said only 250 out of 550 oil fields in villages in Kedewan and Malo districts were included in the work contract between Pertamina EP and KUD Usaha Jaya Bersama (UJB), a cooperative assigned to manage oil produced in the villages.

'€œOil fields not included in the work contract are new fields,'€ he said.

Currently, many investors are carrying out new oil field drilling activities based on permit only from UJB. In an old oil field inherited from the Dutch colonial in Wonocolo village in Kedewan district, at least 10 rigs are operating to tap oil reserves.

'€œThe oil miners sell crude oil produce not being stored at Pertamina EP facilities to several areas. With traditional techniques, they manage to refine the crude oil to become fuel,'€ said Heru. (ebf)(+++)

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