Control of the island has been a dispute between the district administrations of Kotabaru of South Kalimantan and Majene of West Sulawesi after the discovery of the natural wealth.
An agreement has been reached at a meeting facilitated by Vice President Jusuf Kalla at the Presidential Palace, attended by the Energy and Mineral Resource Minister, on the share split of oil and gas from the disputed area, the governor added.
“The meeting was also attended by Kotabaru Regent H. Irhami Ridjani, and South Kalimantan Governor H Rudy Ariffin Sudirman Said, Regent of Majene Kalma Katta, and I as West Sulawesi Governor,” Anwar said.
The Kotabaru district administration of South Kalimantan and the Majene district administration of West Sulawesi finally agreed to equally split 10 percent of oil and gas production from the Lererekang area which constitutes Sebuku oil and gas block.
The Sebuku block holds around 370 billion cubic feet of natural gas in reserve. The plan is that the gas would be channeled via submarine pipe to Senipah, Bontang, 300 kilometers away in East Kalimantan, where there is a liquefied natural gas plant.
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