Pertamina Cracks Down 104 Illegal Oil Mines in South Sumatra

TEMPO.CO, Jakarta - PT Pertamina EP will take firm actions against illegal oil mines in South Sumatera in August this year. In the province, illegal oil miners are robbing oil from at least 104 wells.

Pertamina EP's PR manager Muhammad Baron said that these illegal miners have incurred huge losses and caused serious damages, making it necessary for the company to take firm actions.

Illegal mining activities started to grow in 2011. To date, the practice has become so massive, causing Pertamina and the state to lose 1,000 to 1,500 barrels of crude oil every day.

Pertamina will collaborate with the local governments, the police, and the TNI to bust the illegal miners stealing from the company's work areas.  

According to the company's records, there are 81 wells in Mangunjaya and 23 in Keluang, Musi Banyuasin currently being controlled by illegal miners.

"From those 104 wells, 30 are active ones. We are losing production up to 1,000-1,500 barrels per day," he said in Palembang Wednesday, July 20, Bisnis Indonesia reported.

According to Baron, these illegal mining activities involve many parties including large investors, it is no wonder that the oil was able to enter Tangerang and Singapore through the black market.

Barin said that illegal oil mining activities are not only harming Pertamina, but also causing environmental damage without any rehabilitation efforts. Because of the stealing, the state is also losing revenues from the oil sector.

ADITYA BUDIMAN