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Jakarta Post

Cepu project faces land clearance woes

Jakarta   /   Sat, March 29 2008   /  11:13 am

Upstream oil and gas regulator BPMigas disclosed Friday that operators of oil and gas-rich Cepu block on the border of Central Java and East Java were still encountering problems securing land around the concession. BPMigas deputy chairman Abdul Muin was concerned the problems could delay the block's production of the oil and gas needed to help jack up the country's declining oil production levels. He said BPMigas would request assistance from other ministries and agencies in resolving the problem ensuring an initial 20 hectares could be acquired around April. "It will involve a number of parties, such as the Forestry Ministry, local governments and the police," Muin said, as quoted by Antara. According to Muin, the agency had even asked Vice President Jusuf Kalla to help resolve the problem. U.S. energy giant Exxon Mobil Corp. and state-owned oi...