Govt to consult provinces on oil block tenders

The government will soon consult provincial administrations about its plans to tender oil blocks in the areas in 2003, a senior government official told Petromindo.Com Friday.

?Such consultations aim to have better knowledge and understanding about the government?s plans and the aspirations of local administrations,? said Kardaya Warnika, vice chairman of BPMIGAS which holds the highest authority over the country?s oil upstream oil and gas sectors.

The current oil and gas law stipulates that the central government is entitled to 85 percent of the government?s oil revenues, while the remaining 15 percent goes to the province where oil projects are located. The law also entails that the central government receive 70 percent of the government?s gas revenues, and the remaining 30 percent is for the provincial administration.

Earlier reports said that the government would in 2003 open new tenders for 12 oil and gas blocks and retender 15 blocks.

The 11 blocks are located offshore East Java, one in South Sumatra, while the 15 blocks were among the 17 areas tendered in 2002.

The 15 blocks are located in Natuna Sea, central and offshore East Kalimantan, South Sulawesi, Maluku, Arafura Sea offshore Papua, and Makassar Straits. (godang)