Finance Ministry disburses oil and gas funds to Aceh

The Ministry of Finance has disbursed funds amounting to Rp 537 billion (US$=Rp8,900) to Aceh province as the province?s share from oil and gas production for the first quarter of this year, local newspaper Serambi Indonesia reported from Banda Aceh on Friday.

"The Finance Minister?s decree on the disbursement of the funds was issued on May 2002," the secretary for the provincial administration, Amrullah, said in Banda Aceh on Thursday.

He said that the disbursement of the oil and gas funds was faster than the original schedule of June. According to him the disbursement of the funds for the first quarter this year comprised Rp 411.091 billion for gas production, and Rp 126.365 billion fro crude oil production.

According to the new oil and gas law, provincial administrations receive 15 percent from oil production and 30 percent from gas production in their territories .The portion given to provinces come from the government?s share from total oil and gas production in each area.

Most of the oil production activities in the country are carried out by private oil companies under a production-sharing contract. The government generally receives 85 percent from oil output, and 65 percent from gas production. (*)