City's oil revenues to be in the millions of dollars: councilor

City's oil revenues to be in the millions of dollars: councilor

JAKARTA (JP): City administration is expecting an annual
revenue of US$27.5 million from at least 11 oil platforms located
off Pulau Seribu (Thousand Islands), North Jakarta, a councilor
said on Monday.

Councilor Tjuk Sudono from the National Mandate Party (PAN)
said six oil platforms were being operated by Argentine firm YPF-
Maxus, while the remaining five by US firm Arco.

"I'm sure that all the platforms are located within the city's
territory. I've checked with the latest data from Maxus and
Arco," Tjuk, a former executive of Arco, said in a seminar on
environmental preservation at Hotel Cempaka in Central Jakarta.

The six platforms operated by Maxus are Farida, Gita, Rama,
Titi, Zelda and Wanda, while the ones operated by Arco are Zulu
(Bima), NSA, AVA, AAB and AAC.

"With a production capacity of at least 50,000 barrels per
day, the city could get $27.5 million a year from the 11 oil
platforms," Tjuk said.

He said Law No. 25/1999 on Fiscal Balance between the central
government and regional administrations has guaranteed that
Jakarta is entitled to 15 percent of the oil revenues.

Maxus currently receives 15 percent of the company's net
profit, while the remaining 85 percent is allocated to the
Indonesian government.

The firm, whose home base is on Pabelokan Island in Pulau
Seribu, currently operates 400 oil wells from 60 oil platforms
nationwide, which are situated in offshore oil fields spanning
from Riau, Lampung, West Java and Jakarta.

The firm's executives earlier denied their oil platforms in
Jakarta had a total production capacity of 120,000 barrels per
day.

Tjuk suggested the city administration verify the existence of
the oil platforms, located off Pulau Seribu, with the central
government.

"We could develop Pulau Seribu and improve the welfare of its
people, who are still below the poverty line, with the money from
the oil sales," he said. (jun)