Jakarta (ANTARA News) - The Upstream Oil and Gas Regulatory Special Task Force (SSK-Migas) said the sealing of a well in the Block Jabung oil field operated by PetroChina International Jabung in East Tanjung Jabung District, Jambi, was groundless.

SKK-Migas Secretary Gde Pradnyana said here on Tuesday that the local government`s step to seal the oil well was groundless and caused losses to the state.

"We regret this baseless action," Pradnyana said.

Communication Manager of PetroChina Int Companies in Indonesia Novie Latanna added that the sealing of the oil well caused potential losses of 433 barrels of oil per day and 11.011 million cubic feet of gas per day.

"The value of potential oil and gas loss can reach US$220,166 per day," Novie said adding that the sealing of the well also stopped the maintenance of the oil resource and gas.

Novie said that a well in a locked condition could cause a big risk. PetroChina has asked for a permit for the drilling of the field since August 2012, but it had yet to be issued.

"We hope that the permit will soon be issued soon so that the the well seal will also be removed immediately," Novie said.

Pradnyana added that President Susilo Bambang Yudhoyoo had issued instruction No.2/2012 ordering all sides, including district heads, to support efforts to increase the country`s oil output.

"But, the local administration of Tanjung Jabung District, even sealed off the well whose permit should have been issued by itself," Pradnyana said.


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Editor: Jafar M Sidik
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