Balikpapan wants to take over two gas wells from Vico

The Jakarta Post, Jakarta | Thu, 01/01/2009 10:19 AM  

The Balikpapan mayoralty has planned to take over two gas wells belonging to oil firm Virginia Indonesia (Vico) and exploit them to supply gas to local power plants. 

The two gas wells the Balikpapan mayoralty is aiming are located at Lamaru gas field, i.e. Lamaru I and Lamaru II. 

"We are still trying to sue Vico over the wells," Balikpapan deputy mayor Rizal Effendy was quoted by Tempointeraktif.com as saying. 

Rizal noted that Vico Indonesia had not developed the two gas wells but it rejected the administration's request to take them over. 

He noted that the two gas wells would give additional gas supply for power plants in Balikpapan.