Kotabaru completes requirements for oil and gas profit sharing

Kotabaru, S Kalimantan (AntaranewsKalsel) - The Kotabaru Administration together with the Government of South Kalimantan Province is ready to fix the regional owned enterprise (BUMD) as a requirement to obtain profit sharing from oil and gas management in Sebuku Block.

Administrative Assistant of Kotabaru  H Hariansyah here on Friday said the South Kalimantan Government has received a visit from West Sulawesi Government, one of which to follow up the problem of oil and gas management in Sebuku Block.

"Two things will be done by Kotabaru, South Kalimantan, and West Sulawesi Government," he said.

The first is to undertake the establishment of a jointly formed BUMD, and second is forming an integrated team of the two provinces.

Hopefully, continued Hariansyah, if all that has been done Kotabaru, in this case, the South Kalimantan Government, can get funds from the results of oil and gas management in the Sebuku Block.

Previously, the DPRD Kotabaru questioned the progress of renegotiation as an effort to obtain profit sharing for oil and gas exploitation in Larilarian Island, Sebuku Block.

Kotabaru DPRD Chairman Hj Alfisah admitted that the legislature has made various efforts in accordance with its authority, both to lobby provinces and ministries to encourage the right to the share.

"The legislature has done its utmost to encourage the effort to get profit from exploitation in Larilarian Island, both to provinces and ministries," Alfisah said.

The issue of Larilarian Island had been fussed among South Kalimantan Government, the Ministry of Home Affairs, and West Sulawesi. The central government declared the Sebuku Block oil exploration site over 12 nautical miles from the coastline of the Island.

Based on the prevailing laws, both Kotabaru and South Kalimantan can not claim as the owner of the resources. However, on the recommendation of the central government, the company worked on the Sebuku Block gave an opportunity to the South Kalimantan to participate by investing 10 percent (Rp500 billion) of the total capital.

Meanwhile, the exploration activities by Mubadala Petroleum on the natural resources done off the coast of Larilarian Island.

Based on research, Sebuku oil and gas reserves equal to 370 billion cubic feet, with estimated production per day 100 million standard cubic feet. While the production of condensate 94 barrels of oil per day or 34,310 barrels per year.

Responding to the polemic, Kotabaru DPRD has returned to the Ministry of Finance (Kemenkeu) in Jakarta to fight for the revenue sharing fund on oil and gas exploitation in Larilarian Island.