BP Migas questioned role over Ambalat<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
Prior to its scheduled meeting with Oil and Gas Regulatory
\nImplementing Body (BP Migas) and the Ministry of Energy and
\nMineral Resources, the House of Representatives questioned the
\nrole of those bodies in preventing the ongoing dispute between
\nIndonesia and Malaysia over the Ambalat offshore oil field.<\/p>\n
Legislator Tjatur Sapto Edy from House Commission VII
\noverseeing energy, mineral resources and environmental affairs
\nsaid on Tuesday that BP Migas and the energy ministry should have
\nbeen aware of the possibility of a dispute over the oil field.<\/p>\n
\"Petronas opened the tender for exploration in Ambalat in
\n2003. The open bidding was announced to prospective investors all
\nover the world,\" he said.<\/p>\n
\"Why weren't BP Migas, the ministry's director general of oil
\nand gas, or (state oil and gas company) Pertamina aware about the
\nissue in the first place? Why did they start buzzing about the
\nconcession after Malaysia announced the (tender) winner?\"<\/p>\n
Tjatur said that if those domestic institutions in the energy
\nsector knew about the tender in the first place, there could have
\nbeen official protest letters sent to Malaysia to prevent the bid
\nfrom going through -- a bid which international oil giant Royal
\nDutch\/Shell won.<\/p>\n
He also suggested that the House urge the government to put
\nShell on a \"blacklist\" along with other companies from
\nparticipating in any oil tenders here in the future.<\/p>\n
\"However, it all depends on the results of the scheduled
\nmeeting with the two bodies. If we smell something fishy about
\nShell's involvement in the case, we'll urge the government to
\nblacklist the firm,\" he told reporters.<\/p>\n
Apart from questioning BP Migas and the energy ministry,
\nCommission VII will also try to speak with Shell and Petronas
\nlater this week about the divisive issue.<\/p>\n
Indonesia and Malaysia have been involved in an intense
\ndispute over the possession of the Ambalat block, after
\nMalaysia's state oil company, Petronas, awarded Shell the
\nconcession rights to exploit it.<\/p>\n
Indonesia awarded a similar contract to another multinational
\noil giant Unocal on Dec. 12, 2004.<\/p>\n
Previously on Sept. 27, 1999, Shell was awarded a production
\nsharing contract by Indonesia to explore the area, but the
\ncompany terminated the agreement on Oct. 4, 2001, and handed over
\nthe concession to Italian oil producer Eni.<\/p>\n
Some local media groups here have speculated that Shell handed
\nover the award after allegedly finding a small amount of
\nreserves, but then turned around and participated in the Petronas
\ntender after learning of the large amount of oil and gas reserves
\nthere.<\/p>\n
BP Migas estimates that the oil deposits in Ambalat could
\nrange from 100 million barrels to one billion barrels.<\/p>",
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