New oil and gas law will not be reviewed despite protest

The government has no plan to review the new oil and gas law despite protest from oil-rich provinces such as Riau but the province?s aspiration will be accommodated through the government?s regulations, according to Director General of Oil and Gas Rachmat Sudibyo.

He said that as new oil and gas had been approved by President Megawati Sukarnoputri, it would be difficult to review the legislation.

?The most important thing is that the provinces? aspiration will be accommodated though the issuance of government regulations,? he said.

Asked about Riau province?s demand to get part of revenues to be raised from offshore gas fields on Natuna island, he said that it would be regulated by the inter-governmental financial law, which among others, determines the portion of revenues that must go to the provincial administration.

Riau has opposed the new oil and gas law, which among others stipulates that oil and gas production from offshore fields are solely under the control of the central government. (*)