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JAKARTA: PT Pertamina EP assess drilling activities conducted by Jaya Joint Business KUD cq PT Phoenix at 138 Dadangilo well location, the Village District Hargomulyo Kedewan, Bojonegoro, East Java Rule illegal because it violates the Minister of Energy and Mineral Resources No.1/2008.

M Aaron, Manager of Public Relations of PT Pertamina EP said KUD only has the recommendation of the Regents Bojonegoro and have not received permission from the Governor of East Java which is still the early stages of the mining concession application process oil in old wells.

Thus, he said, KUD activity violates Rule No. Minister of Energy and Mineral Resources. 1 / 2008 on Guidelines for Oil Mining In The Old Wells and violating Law No. 22/2001 on Oil and Gas Article 52.

EMR No candy. 1 / 2008 states pursue activities and producing crude oil from old wells can be done by KUD or enterprises with a proposal to Contractors Cooperation Contract (KKKS), in this case PT Pertamina EP. In addition, the proposal must be completed technical and administrative requirements, including recommendations from regency / city location of an old well located and approval from the Provincial Government.

"Furthermore, to be implemented, the proposals that have met the technical and administrative requirements must first be approved by KKKS which then forwards to the approval process through to the Minister of Energy and Mineral Resources BPMIGAS cq Directorate General of Oil and Gas," he said in a press release today.

Illegal drilling activities conducted by the Joint cq KUD Jaya Enterprises Phoenix is, he said, has caused wild bursts (blow out) at the well location Dadangilo 138. Shot of the wild, he explained, has raised the impact of environmental pollution and endanger the safety of residents in the vicinity.

"Drilling activities are carried out by Phoenix with the use of equipment and labor that are not in accordance with standard oil industry and is not supported by clear operational standards," said Aaron.

Aaron admitted as the manager of Pertamina EP area has been sending warning letters to the Chairman of the Joint KUD Jaya Business and Phoenix on April 28, 2010. However, he said, the KUD and Phoenix continue to drilling activities.

"Therefore, Pertamina EP report the matter to the Police Resort Bojonegoro on June 2, 2010 according to the direction BPMIGAS and the Directorate General of Oil and Gas," he explained.

Previously, on March 24, 2009 Pertamina EP has also signed co-operation with the management of old wells Wargo KUD Tani Makmur in Blora district as a pilot. Wargo KUD Tani Makmur will produce oil from old wells in accordance with the quality and specification and submit it to Pertamina EP. (Mrp) By: Rudi Arifianto (Bisnis.com)

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