JOB Pertamina-Medco E&P suspended its operations in the Tiaka oilfield in April 2016 following the plumetting global oil price. At the time, JOB field manager Susanto said the company would reopen the oilfield when the global oil price reached US$60 per barrel.

“With the improvement of global oil prices and based on our business analysis, we are planning to resume activities and operations at the Tiaka block,” said JOB Pertamina-Medco E&P Tomori business support manager, M. Ferry Bagja in Palu on Thursday.

Central Sulawesi Governor Longki Djanggola said he hoped the company would thoroughly analyze the situation before reactivating the Tiaka block, saying the block’s operations had previously caused the provincial administration to experience losses.

“There needs to be a thorough and comprehensive examination so that we do not lose out and also so that the public can also benefit,” he said.

Longki added his administration had prepared a provincially owned company to take a 10 percent participating interest (PI) in the project, which the province has fought for at the Energy and Mineral Resources Ministry and Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).

He emphasized that the JOB needed to involve the provincial administration in the project, in accordance with the relevant laws and regulations.

“The Central Sulawesi provincial administration and the Banggai regency administration did not receive the 10 percent PI and DMO [domestic market obligation] from the Donggi Senoro block.” he said, referring to a liquefied natural gas (LNG) project in the area.

“We do not want to have the same experience when Tiaka is reactivated.”

Governor Longki also said he hoped SKKMigas would be more transparent with production data, so that his administration could accurately calculate its legally-mandated share of the revenue.

In turn, the operators said they hoped the provincial administration would help campaign for the residents’ support for the project.

The Tiaka block had been the site of a riot in 2011, leaving two dead. Claiming that the oil consortium had broken its promise to build public facilities in the area, an angry mob of locals had attacked and burned the oilfield.

“We hope the governor supports the coordination and implementation of the upstream oil-and-gas industry’s community outreach efforts at the province, regency and community level”, said Roy Widiartha, the head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) operation division for Kalimantan and Sulawesi.

Besides the Tiaka block, Central Sulawesi Energy and Mineral Resources agency head Yanmar Nainggolan said there were several other currently active oil and gas projects in the province.

“There is the Matindok block, the Senoro-Toili block, the South Matindok block and the Surumana block,” he said. There was also the Ebuny block that borders Southeast Sulawesi, which has been open to oil and gas project offers since 2016.

He added that a well in the Tiaka block had already started producing 6,000 barrels per day.

He said the Donggala regency also had a lot of oil potential in the Suruman block that bordered West Sulawesi, which had been won by Exxon Mobile and also in the Balaeselang and Dampelas blocks, which have yet to be auctioned. (kmt)

Popular

To my horror, it’s just a movie!

RI, Australia strengthen partnership on taxing crypto assets

Pentagon chief congratulates Prabowo on being elected President