Aceh will receive Rp 2 trillion from oil and gas annually

Aceh province will receive at least Rp 2 trillion (US$=Rp 8,500) from the province?s gas and oil production under the new production sharing agreement with the central government, according to local newspaper Serambi Indonesia.

Of the total, about Rp 1.6 trillion will come from natural gas production and the other Rp 585 billion from oil production.

Under the special autonomy law implemented in Aceh, the province will receive 70 percent of the gas and oil production, while the remaining will go to the central government. The split arrangement is quite different from those implemented in other provinces, which receive only 35 percent from gas and 15 from oil production.

The new production sharing agreement will last for nine years after which the portion of the provincial administration will be reduced to 50 percent both for oil and gas production,

This year, gas production in the province reaches about 297,322 million cubic a year, while oil is about 13.4 million barrels. The production split is based on the shares received by the government from oil and gas contractors.(*)