Riau will continue to fight for share in Natuna gas

The provincial administration of Riau will continue to fight for a share from the production of natural gas offshore Natuna island, which is located in the northern part of the province, Riau Post reported on Thursday.

Assistant II of the province?s secretary, Asparaini Rasyad said in Pekanbaru on Wednesday that the special team, which was established by the provincial administration to fight for the rights to get a share in the gas production from Natuna island ? would be more proactive to ensure that part of the gas production also go to the province.

According to the existing production-sharing contract, about 70 percent of the gas production go to the government, and the other 30 percent to contractors. Under the autonomy law, the provincial administration has the rights to get part of the government?s shares obtained from onshore gas fields.

As all the gas fields on Natuna island are located offshore the island, the provincial administration has no rights even to receive a single cent from the gas development. This policy, according to the provincial administration, should be changed so that part of the gas production on such offshore fields also go its coffer.

?We are still collecting data on the volume of gas production and their total reserves on the Natuna island,? he was quoted as saying after meeting with the island?s gas contractors.

He acknowledged that the data provided by the contractors about their gas production was still too limited. According to him, the Gas Team will soon meet Pertamina to negotiate for the gas production split. (*)