Benuo Taka to operate Vico's ex-field

Local firm (Perusda) Benuo Taka owned by the local government (Pemda) of 
Penajam Paser Utara (PPU) regency has made every effort to have the rights 
to operate the oil and gas filed abandoned by Vico Indonesie in Lawelawe of 
the Penajam sub district in the regency of Penajam Paser Utara. 

Head of the Public Relations and Protocol of the Pemda, Drs Tohar, told 
local daily Kaltim Post on Apr.13, from a presentation over the cost and 
benefit of re-operating the filed it was concluded that Vico's ex-field in 
Lawelawe was economically feasible for operation. 

By directly operating the oil and gas field the Pemda could increase its 
local revenues for the sake of the development of the regency. In so doing 
a number of local workers could also be recruited while improving the local 
economy of people. 

On Dec.31, 2002 Vico Indonesie returned the field to the central government 
of Indonesia through the directorate general of oil and gas. So far no new 
contractor has been appointed to operate the field. 

"But on Oct.1, 2003 the operational right of the field was given to 
Pertamina for a period of six months under a contract between Pertamina and 
Vico Indonesie. 

Later on both Vico Indonesie and Pertamina seemed to no longer have 
interest to continue operating the field. However, in business prospective 
the field is still feasible for further operation. 

Currently in East Kalimantan there are totally six companies operating oil 
and gas fields. Three of them i.e. Total Indonesie, Unocal Indonesia 
Company and Vico Indonesie are the largest producers. The productions of 
gas from those three companies come from various oil and gas fields in the 
province. 

All the productions of oil and gas are garnered in the facility of Badak 
Central of the operational area of Vico Indonesie in Muara Badak. The 
productions are then transferred to PT Badak NGL & Co Bontang and further 
processed at Badak Train into liquefied natural gas (LNG). *






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