Oil producers asked to cover the cost of meeting with President

The country's oil and gas producers have been asked to cover the cost of the second Stakeholder Meeting that will be officially opened by President Megawati in the Bogor Palace on Friday, Kompas reported on Thursday.

The oil and gas producers will share the cost of the one-day meeting which is estimated to reach at least Rp3 billion (1$=Rp8,250). The contribution of each oil and gas company will be made in proportion to the level of their production.

According to data obtained by Kompas, Caltex is required to contribute Rp397 million, Inpex Rp244 million and Total E&P Rp210 million. The total contribution from oil and gas producers will reach Rp1.8 billion, while the government and Pertamina are expected to cover the rest. The cost of this year's meeting is a half of last year's meeting which was held in Bali.

The daily said that many oil and gas producers felt uneasy due to the requirement because they don't know where to put the spending in their budget. The oil producers, which carry out their production activities under production sharing contracts with the government often face tight scrutiny from the government audit agency (BPKP). Under the contract agreement, the operational cost of the oil and gas producers will be covered from part of their production.

Director General of Oil and Gas Iin Takhyan confirmed that the cost of the meeting would be jointly shared by oil and gas producers, Pertamina and the government.

"It's common thing. In other countries, a company is often asked to buy a seat in an important meeting. Moreover, the stakeholders meeting is quite important for oil and gas producers because they can deliver their complaints or suggestion in the meeting," he said. (*)