Govt to Boost Oil, Gas Exploration in Papua

http://www.thejakartapost.com/news/2011/11/14/govt-boost-oil-gas-exploration-papua.html

The Jakarta Post | Mon, 11/14/2011 7:21 PM

The government says that it will be more focused on the development of oil and gas reserves in Papua.

“According to the results of satellite photos, Papua has huge oil and gas reserves,” deputy minister for energy and mineral resources Widjajono Partowidagdo said on Monday.

Currently, many companies conducting exploration activities in the province face various constraints, including difficulty obtaining permission to drill in protected forest areas, he said.

“We’ll discuss this issue with the Forestry Ministry as soon as possible,” he said.

Widjajono said that oil and gas drilling did not require massive destruction of forest. He called on the the Forestry Ministry to grant licenses to companies interested in drilling for gas and oil.

“Moreover, there are blocks located on the border area with Papua New Guinea. That country started production activities in blocks located on the border area long ago. If we don’t move fast, our oil reserves can be absorbed intentionally or unintentionally by them,” he said.

According to upstream oil and gas regulator BPMigas, one of the blocks located near the border is Warim. Several wells were drilled in the block in 1989, but the government then declared the area a protected forest reserve, and ordered that all drilling activities cease.

US-based ConocoPhillips is currently waiting for permission from the Forestry Ministry to begin exploration activities in the block.

ENDS

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