The government through the Ministry of Energy and Mineral Resources (EMR) asserted the governor did not have the authority to issue oil and gas mining concessions on old wells.
The exploitation of old wells has been regulated in ESDM Minister Regulation No. 01 of 2008 concerning Guidelines for Mining Exploitation in Old Wells.
Director-General of Oil and Gas of the Ministry of Energy and Mineral Resources IGN Wiratmadja Puja said Regulation of the Minister of Energy and Mineral Resources No 01 of 2003 in principle states that mining exploitation in old wells can be done in the contractor's working contractor working area by a Regionally Owned Enterprise (BUMD) or Village Unit Cooperative (KUD).
However, BUMD or KUD must submit petroleum exploitation and production applications to the contractor with a copy to the Minister of Energy and Mineral Resources CQ Director General of Oil and Gas by attaching administrative and technical documents such as KUD or BUMD establishment certificates and their amendments, company registration certificate, tax identification number (NPWP), and domicile certificate.
According to Wiratmaja mining exploitation in old wells can be carried out in the contractor's working area of the cooperation contract by the BUMD or KUD after obtaining permission from the Minister of Energy and Mineral Resources, especially the Director-General of Oil and Gas.
The Governor does not have the authority to issue mining concessions for old oil and gas wells. PT Pertamina EP and the security apparatus are currently controlling oil wells in the PT Pertamina EP Asset 1 KKKS area in 104 wells in two sub-districts in Musi Banyusin, South Sumatra, namely Keluang and Mangunjaya.
Control activities carried out by cementing the well and knocking down the traditional "rig" belonging to unscrupulous residents. A total of 65 wells have been demolished with cement in Keluang and Mangunjaya. But the control effort did not take place smoothly.
In Mangunjaya, there are 27 wells that enter the "red zone". Called the red zone because the public submitted and submitted evidence of a letter of recommendation from the Governor of South Sumatra Alex Noerdin regarding approval on the management of old wells in October 2013. The letter numbered 541.1 / 22399 / Dispertamben / 2013 contained approval of the exploitation of old oil wells by Governor Alex to the Chair KUD Karya Tambang Jaya in Mangun Jaya, Musi Banyuasin.
After coordinating, Musi Banyuasin Police Chief Adjunct Senior Commissioner Julihan Muntaha, who led the policing operation coordinated with Pertamina to postpone cementing while discussing the recommendation of a letter from Governor Alex.
Komaidi Notonegoro, an energy observer from the ReforMiner Institute, said that when Alex Nurdin became regent of Musi Banyuasin there were indeed regional regulations related to the management of old wells in his area.
Harry Purnomo, Member of Commission VII of the House of Representatives (DPR) said that the governor should coordinate with Pertamina to resolve the illegal drilling problem that occurred in his area.
"Normally Pertamina EP can protest to the Governor. According to Harry, if there is drilling on private land, the local government and local law enforcement agencies can take action by coordinating with Pertamina and SKK Migas.
Investor Daily, Page-9, Thursday, Oct 13, 2016
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