JP\/13\/AMBALAT<\/p>\n
RI seeks clarification from Shell, Petronas over Ambalat<\/p>\n
Fabiola Desy Unidjaja
\nThe Jakarta Post\/Jakarta<\/p>\n
Jakarta will seek explanations from oil giants Royal Dutch\/Shell
\nand Malaysia's Petronas about their involvement in the issue of
\nsovereignty over the East Ambalat offshore block, which is
\nclaimed by Indonesia and Malaysia.<\/p>\n
The two companies have been asked to attend later this week a
\nseries of meetings with the government, represented by the
\nUpstream Oil and Gas Executive Agency (BP Migas) and the Ministry
\nof Energy and Mineral Resources, and the House of
\nRepresentatives.<\/p>\n
\"We need clarification of the business reasons behind the
\ndispute, and to ensure that they were not using our data during
\ntheir negotiations before agreeing to the concession (over the
\nEast Ambalat block),\" Iin Arifin Takhyan, the Ministry of Energy
\nand Mineral Resources' director general for oil and gas, said on
\nSunday.<\/p>\n
Iin was referring to the contract agreed to between Petronas
\nand Shell last month to develop and exploit the disputed area --
\na move that heated up the sovereignty row between Indonesia and
\nMalaysia over Ambalat.<\/p>\n
Only months earlier, Indonesia awarded a similar contract to
\nanother multinational oil giant, Unocal.<\/p>\n
But because Shell was also awarded the right to exploit the
\nAmbalat block -- located next to the East Ambalat block -- by
\nIndonesia in 1999, there is concern that Shell used data from
\nIndonesia during its negotiations with Malaysia.<\/p>\n
If the company did use the data, Iin said, it would be a
\nviolation of the 1999 agreement that stipulated all data
\nregarding oil reserves and other specifications about the block
\nmust be returned to Indonesia in the event the contract was
\nterminated.<\/p>\n
Shell did terminate the agreement in 2001 and handed over the
\nconcession to Ambalat to Italian oil producer Eni.<\/p>\n
\"The agreement means Shell must not use our data to appraise
\nthe oil potential in the East Ambalat area,\" Iin said.<\/p>\n
BP Migas chairman Rachmat Sudibyo said it was no surprise
\nforeign companies wanted into Ambalat given the large oil
\npotential in neighboring areas.<\/p>\n
Separately, Andang Bachtiar, chairman of the Indonesian
\nGeologists Association, estimated the oil reserves in Ambalat
\nwere between 100 million and one billion barrels. Such a large
\ndeposit would go a long way toward improving Indonesia's
\ndwindling oil production.<\/p>\n
These huge reserves were the key point in the dispute over
\nAmbalat, according to Andang, who claimed that geologically
\nspeaking, the area belonged to Indonesia.<\/p>\n
\"The Ambalat area belongs to Indonesia as it is a part of the
\nTarakan Basin (in East Kalimantan). Malaysia extended its
\ncoastline to the south by 10 kilometers in 2002, claiming that it
\nwas an archipelagic state, while, in fact, it is not,\" Andang
\nsaid.<\/p>\n
Iin said that after receiving clarification from both Shell
\nand Petronas, the government would decide on its next step.<\/p>\n
\"We will hear their explanation of the matter and then decide
\nwhat we should do.\" (005)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13ambalat-1447899208",
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