South Sumatra is seeking a bigger share of revenue from gas exploitation activities, arguing the current share is too small for the country’s second-biggest oil and gas producing province.
The legislative council says it has been collecting input needed to support the demand.
“We are deliberating the matter with fellow councilors from other gas-producing regions,” council speaker, Wasista Bambang Utoyo, told The Jakarta Post last week.
Wasista said that both Riau and South Sumatra received only 15 percent from the revenue generated from exploitation activities. The remainder goes to the central government.
“It’s different in Aceh and Papua, which receive 85 percent of the revenue, while only 15 percent goes to the central government. I’m not sure why. It may be a political consideration,” he said.
South Sumatra has a reserve of over 5 million MSTB (metric stock tank barrels).
Yet from between 1998 and 2002, only 3.7 million barrels per day were exploited by the state oil and gas company, PT Pertamina.
In terms of gas, similarly, of about 7,238 BSCF (billion standard cubic feet) in reserve, only 2.2 million MMSCF (mega million standard cubic feet) on average has been exploited for the last four years. The reserve of methane is 122 TSCF (trillion standard cubic feet) while that of the geothermal is 1,335 megawatts.
Despite its rich natural resources, South Sumatra has frequently experienced electricity blackouts and gas shortages.
This has further increased public concern, including among the South Sumatra Oil, Gas and Energy Community (MMGE), which has been demanding the province be given the opportunity to manage its own oil and gas block.
MMGE’s chairman Ahmad Rizal, said he believed the 85-15 percent share stipulated in the law was
unfair.
“This region is rich in natural resources. Yet, its contribution is not significant compared to what is taken out of the province,” Rizal said.
