E. Java?s Sidoarjo administration demands greater portion of gas revenues

The Sidoarjo regency administration in East Java has urged the central government to review its regulation on the division of oil and gas revenues among regencies in the province, Bisnis Indonesia daily reported on Friday.

Regent Win Winarto said Sidoarjo, where PT Lapindo Brantas develops several gas wells, should receive more from gas dividend derived from the company?s gas sales.

Winarto complained existing rulings entailed equal division of gas dividend among all regencies in East Java including non-gas producing areas like Pacitan, Sampang and Probolinggo. ?Obviously, this is unfair,? he said.

The minister of finance issued this year a decree on the division of oil and gas revenues between the central government and oil and gas producing regencies.

Winarto sent a letter to Minister of Finance Boediono in June urging him to review the regulation.

Lapindo Brantas is the operator of Brantas production sharing contract (PSC) in Sidoarjo.

Australian oil and gas firm Novus Petroleum Limited has 50 percent working interest in Brantas PSC. (*)