The Chinese operator had been hit with a demand for a 10% stake in the oilfield, which is located on the Tuban joint operating body, by the Bojonegoro regency.
The regency subsequently refused permission for new drilling to begin until the issue could be settled.
However, PetroChina stuck to its guns, maintaining that the laws allowing local administrations to take a 10% stake in Indonesian oil and gas ventures had not been passed when the joint operating body was signed and therefore had no relevance in this instance.
After
