Bimantara 'no longer has stake in Arco gas field'<\/p>\n
JAKARTA (JP): The Bimantara group, controlled by Bambang
\nTrihatmodjo, a son of former president Soeharto, no longer holds
\na share in the Kangean gas block in East Java due to dilution of
\nits stake, a state oil and gas company Pertamina official said on
\nTuesday.<\/p>\n
A spokesman for the Pertamina directorate responsible for the
\nsupervision of foreign contractors, Sidick Nitikusuma, said
\nBimantara's 10 percent stake in the gas operation had been
\ndiluted to an insignificant amount as a result of the group's
\nfailure to inject fresh capital.<\/p>\n
The company purchased a 10 percent stake in the gas block from
\nAtlantic Richfield Indonesia Inc. (ARII) and British Petroleum in
\n1992. However, since then it has not matched fresh capital
\ninjected into the venture by its partners and as a consequence,
\nits share in the operation has diminished to an insignificant
\namount.<\/p>\n
\"Thus, the company no longer has any shares in the gas block,\"
\nSidick said.<\/p>\n
The composition of shares in the block is now unknown.<\/p>\n
Previously, the block was 54 percent owned by ARII, which is a
\nsubsidiary of the U.S.-based Atlantic Richfield Company (ARCO).<\/p>\n
The Kangean block produces 330 million cubic feet of gas per
\nday.<\/p>\n
Pertamina said recently it has identified 159 contracts within
\nthe company which were awarded on the grounds of collusion,
\ncorruption and nepotism under the Soeharto regime.<\/p>\n
Pertamina has long been associated with the Soeharto family
\nand cronies, who are believed to have profited handsomely from
\nIndonesia's lucrative oil and gas reserves during the former
\npresident's 32-year rule.<\/p>\n
Pertamina's director of exploration and production, Priyambodo
\nMulyosudirjo, said earlier that Pertamina had urged its foreign
\nproduction sharing contractors to get rid of Soeharto's family
\nand cronies by taking over their shares.<\/p>\n
Sidick also said that Pertamina was investigating allegations
\nthat some oil and gas contractors routinely employ expatriates
\nwithout the correct work permits.<\/p>\n
An informed source said on Tuesday that Pertamina had recently
\nbeen told that 15 expatriates, mostly from Britain, had routinely
\nentered the country since 1997 to work for the British-based
\nPremier Oil without the correct visas and permits.<\/p>\n
\"We have yet to establish if there is any truth in the
\nallegations,\" Sidick said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bimantara-no-longer-has-stake-in-arco-gas-field-1447893297",
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