Aceh regents question drastic drop in gas production plan

Regents and mayors from all parts of Aceh have questioned the central government?s plan to reduce gas production for next year, saying that the decision was unrealistic, Serambi Indonesia reported on Tuesday.

In a meeting in Banda Aceh on Monday, the regents and mayors demanded the ministry of energy and mineral resources to clarify in the gas production plan.

"The regents and mayors have asked Aceh Governor to write a letter to Minister of Mine and Energy Purnomo to clarify the change in the gas production plan," the secretary of the provincial administration, Amarullah, told reporters following the meeting.

The central government initially planned to sell natural gas of about 41,245 MMSCF from East Aceh this year, and another 386,535 MMSCF from North Aceh. However, the projection for the sales of natural gas sales from East Aceh, has been lowered to 29,775 MMSCF, and those from North Aceh to 148,848 MMSCF.

The projection of crude oil production remains unchanged. But the regents and mayors said that the sharp decline in the gas sales projection was unrealistic given the improvement in the security situation in the province.

In 2001, the realized revenues for the province from the sales of crude oil and gas in the province totaled Rp 805.508 billion, or about 75.17 percent of the projected Rp 1.071 trillion. North Aceh received Rp 310 billion, East Aceh Rp 38.9 billion, the provincial administration Rp 116 billion, while non producing regencies received Rp 26.8 billion each.

Amarullah said that the sales of gas from the province reached 146,263 MMSCF last year or about 49.19 percent from the initial projection of 297,322 MMSCF. (*)