East Kalimantan gets most oil, gas revenue

East Kalimantan gets most oil, gas revenue

The Jakarta Post, Jakarta

East Kalimantan tops the list of the provincial oil and gas
revenue stakes this year with a total estimated revenue of Rp 3.1
trillion (about US$326 million), according to the Ministry of
Finance.

The province is home to the world's largest liquefied natural
gas (LNG) complex in Bontang, which has a production capacity of
about 21 million tons annually.

The province is followed by Riau with estimated revenue of Rp
2.95 trillion and Aceh with Rp 1.62 trillion.

Riau is home to PT Caltex Pacific Indonesia, a subsidiary of
American energy giant ChevronTexaco, which is the largest oil
producer in the country, while Aceh is home to the Arun LNG
plant, which is co-owned by American energy giant ExxonMobil.

There are 14 provinces now entitled to share the central
government's oil and gas revenues this year. Their combined
revenues are estimated at Rp 9.18 trillion this year, according
the ministry in a statement.

The figures were stipulated in a decree issued by the ministry
on May 31, the ministry said in a statement.

Under the autonomy legislation, the country's regions get 15
percent of oil revenue and 30 percent of gas revenue, except for
Aceh and Papua, which receive a higher share at 85 percent of oil
revenues and 70 percent of gas revenues, given their special
autonomy status. The remaining revenues accrue to the central
government.

The ministry said other provinces that receive oil and gas
revenues are South Sumatra, which is entitled to receive Rp
743.24 billion this year, and West Java (Rp 400.94 billion), Riau
Archipelago (Rp 108.06 billion), Lampung (Rp 103.11 billion),
Jakarta (Rp 45.11 billion), North Sumatra (Rp 42.7 billion),
Jambi (Rp 34.3 billion), Bangka Belitung (Rp 13.69 billion),
Maluku (Rp 4.01 billion), and Central Sulawesi (Rp 0.37 billion).

The ministry said the amount of the oil and gas revenues for
the regions was calculated based on the 2004 state budget
assumptions as stipulated in Law No. 28/2003 and a decree issued
by the Ministry of Energy and Mineral Resources on mineral, oil
and gas producing regions and their revenues.

The state budget assumes an oil price of an average of $22 per
barrel this year. However, the price has been above $40 for some
time recently.

Following the rise in oil prices, local governments have been
putting pressure on the central government to give them more oil
and gas revenues this year.