Indragiri Hulu, Riau to boost local revenues from oil sector
Monday, January 29 2001 - 04:00 AM WIB
Indragiri Hulu (Inhu), one of Riau's regencies estimates to receive Rp 13 billion (1$=Rp 9500) in local revenues this year, about Rp 10 billion of which are expected to come from the oil sector in the form of a production sharing revenue, Riau Pos reported on Monday.
The regent, Zulkarnain, said in the regency capital of Rengat on Saturday that the local revenues could be increased to Rp 20 billon, if the oil producers agreed with the local government's proposal to pay another $3 per for every barrel of their production.
"We try to convince the existing oil producers that paying $3 for every barrel to the local coffer is not becoming problem to them," he was quoted saying.
Besides, Caltex Pacific Indonesia, two other oil companies, PT Exspan Nusantara Lirik and JOB are involved in the oil industry in the regency under a production-sharing contract with Pertamina. Their production reaches about 6,000 barrels per day.
Zulkarnain said that contractors operating in the province had also agreed to pay 0.5 percent of their project value as their contribution to the regency's budget. (*)