TEMPO.CO, Jakarta - PT Bina Bangun Wibawa Mukti (BBWM), a company based in Bekasi, West Java, has agreed to take part in the management of the Offshore North West Java block in the waters off the coast of the province.
"Through this cooperation, we hope to earn around ten percent in participating interest," said the Executive Director of BBWM, Prananto Sukodjatmoko in Bekasi on Sunday.
Prananto said that three other regional companies (BUMD) will participate in the venture - namely PT Migas Hulu Jabar, PD Petrogas Persada Karawang, as well as PT Subang Sejahtera.
"Another BUMD from the regency of Indramayu is slated to join the venture, but we have to wait for confirmation from their side," said Prananto, who added that the joint-venture is meant to create a path through which the Ministry of Energy and Mineral Resources could earn at least ten percent in participating interests - just as his company will earn through the venture.
"The regional government - with its sovereign right of jurisdiction - has the right to exploit its natural resources, especially oil and gases," said Prananto, who added that such ventures are in line with several decrees and regulations, inlcuing Law No. 22/2001 on Oil and Gases, Energy and Mineral Resources Ministerial Decree No. 15/2015 on the Management of Oil and Gas Resources, among others.
"These regulations were put in place to help regional governments to recognize and benefit from their natural resources - the benefits of which they could return by developing their economies, thus aiding the progress of the society," finished Prananto.