Jambi rejects Finance Minister?s decree on oil and gas production share

The provincial administration of Jambi has opposed Finance Minister?s decree on the share of revenues from the sales of gas and oil for the second quarter of this year, the head of the province?s treasury office, Erwan Malik said as reported by Kompas on Thursday.

He said that the local government opposed the decree, which allocated the province only about Rp 1.3 billion (US$=Rp9,000) from the proceeds of the oil and gas sales from the province during the second quarter of this year.

"It is certainly irrational if the province?s share from oil and gas production dropped to Rp 1.3 billion in the second quarter of this year from Rp 4.9 billion in the first quarter," he said, adding that the refusal had caused the delay in the disbursement of the oil and gas funds.

Jambi, one of the country?s oil and gas producers, produces about 30,000 barrels of crude oil per day. Of the total crude oil production, about 23,000 barrels per day coming from PetroChina?s oil fields, 6,000 barrels from Pertamina-Gulf joint operation, 2,000 from Pertamina?s fields, and another 2,000 from BWP Meruap.(*)