VICO clarifies 'SCTV' news

VICO clarifies 'SCTV' news

Referring to a broadcast by SCTV on their News Coverage 6 on
the afternoon of June 13, "Villagers occupy land of VICO
operations", we would like to respond as follows.

BPMigas-VICO Indonesia is planning to drill a new well at the
Nilam L site, an operation which will be conducted by a
contractor in Saliki village, Muara Badak subdistrict, Kutai
Kartanegara. The site was acquired in 1979 by BPMigas-VICO
Indonesia by an ad hoc team from Kutai Kartanegara and covers 16
hectares.

Since June 12, dozens of villagers pitched tents at Nilam L
and disturbed drilling activities. The villagers also damaged the
wall of the ground pit. Their activity ended on June 13 and
drilling has recommenced.

VICO Indonesia held talks with the villagers, who were
demanding compensation for the land, and local officials
explained that the area concerned was within VICO's jurisdiction.
The officials also asked the villagers to stop building fish
ponds in the area.

The villagers' actions to block drilling activities at Nilam
L, however, could result in an operational delay, which would in
turn cause a significant loss to government revenues from the oil
and gas sector.

Kutai Kartanegara regency is following up on this case by
inviting all parties involved to discuss villagers' demands on
June 17.

VICO Indonesia is the operating company for the BPMigas
Production Sharing Contract area in East Kalimantan, and is
jointly owned by subsidiaries of both BP and the ENI Group.

LIES TJOKRO
Head of Public Relations
VICO-Indonesia