Pertamina, Dumai negotiate contribution deal

The processing unit of the state oil and gas company Pertamina in Dumai has agreed to talk over the demand to pay a contribution to the city mayoralty, Riau Pos reported on Tuesday.

Bakrun Setia, the secretary of the Commission A of the Dumai Legislative Council said on Monday that representatives of the state owned oil and gas company, the mayoralty and the city council had met to discuss the formula of the contribution payment.

He said that Pertamina had agreed in principal to support the city budget but had yet approved the city administration's formula.

The city administration has offered several schemes including in the form of annual contribution and a production sharing arrangement.

Bakrun said that Pertamina, which based one of its processing unit in Dumai, offered the city administration some part of its non-fuel products to the local administration as its contribution. But no agreement has so far been achieved. (*)