Sidoarjo demands 30% share from Lapindo?s gas production

The regency of Sidoarjo in East Java has asked the central government to get a 30 percent share from PT Lapindo Brantas?s gas production in the regency?s Porong district, Bisnis Indonesia reported from Surabaya on Saturday.

Sidoardjo regent, Wien Hendrarso, said in Surabaya that the regency?s request to receive a 30 percent share from the production of gas in the Porong gas field was in line with the empowerment of the local economy stated in the UU No. 25/1999 law.

He said that the financial gain received by Sidoarjo regency from the operation of the Porong gas field was so little and not significant to support the development plan carried out by the local authority.

At present Lapindo supplies about 42 million standard cubic feet per day (MMSCFD) to the local branch of the state owned gas distribution company PT PGN. The gas is sold at US$2.46 per million British thermal unit (MMBTU).

"We have formally submitted our demand to get a 30 percent share from the gas production to the central government while Lapindo has agreed with the production sharing composition. We are now waiting for the central government?s approval," he added. (*)