Abstract

Pertamina and Mobil Cepu Ltd., (an ExxonMobil subsidiary) here after referred to as MCL, plan to develop the Banyu Urip Oil Field located onshore in the Cepu Block. The planned activity will cover the area of two districts, namely Bojonegoro and Tuban regencies in the Province of East Java, Indonesia.

The main purpose of the Banyu Urip Oil Field Development Project (BUDP) is to produce quality crude oil in accordance with government policy on utilization of oil and gas resources. BUDP will increase national foreign exchange earnings and/or fulfill domestic energy needs. This project plan will also enhance regional development, especially in Bojonegoro and Tuban regencies, and provide local business possibilities and job opportunities for local manpower.

MCL has to conduct an Environmental Impact Assessment (AMDAL) study for a careful and an indepth look at the significant impact to the environment resulting from the development. Prior to conducting the AMDAL study, the AMDAL Central Commission situated in the Ministry of Environment (KLH) shall approve the Terms of Reference (TOR) for the Environmental Impact Analysis (ANDAL). In preparing ANDAL-TOR, the project proponent must include a Public Consultation (PC) effort. The aim of the PC effort is to collect suggestions, opinions and comments from the concerned public.

On the other hand, PC is also important for meeting ExxonMobil's worldwide operational standards, the Operations Integrity Management System (OIMS).

Through system 10-1 "Community Expectations and Concerns", the company should recognize and respond to a community's expectations and concerns about our operations. The PC effort provides ExxonMobil with an opportunity for interaction and communication to forge positive relationships with the public, community and government.

This paper is compiled on the basis of the results of recent PC activities conducted by MCL in 68 villages located in its planned project area for the BUDP. The results of this activity are documented and considered in determining the AMDAL study scope for the BUDP project. The AMDAL Central Commission approved BUDP ANDAL-TOR on 17 January 2003.