Kuntoro to probe alleged fraud at Balongan refinery<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Kuntoro
\nMangkusubroto said yesterday he would investigate allegations of
\ncorruption at the US$2billion Balongan refinery in West Java,
\nwhich is owned by state oil and gas company Pertamina.<\/p>\n
\"I learned about the (alleged) scandal from press reports
\ntoday (yesterday). I will instruct Pertamina's directors to
\nformally explain whether the press reports are true,\" Kuntoro
\nsaid.<\/p>\n
He promised to thoroughly investigate the case and said he
\nwould not hesitate to punish any wrong-doers.<\/p>\n
A Pertamina official who wished to remain anonymous said
\nearlier that the Balongan refinery might have been built using
\npoor quality construction materials so that Pertamina officials
\nsupervising the project could rake in illegal cost savings.<\/p>\n
As a result, the facilities have often experienced troubles
\nsince production started in March 1995, the official said.<\/p>\n
The refinery was forced to cease operations again on Tuesday
\nbecause of technical problems.<\/p>\n
Unlike the Balangon plant, older refineries developed by other
\ncompanies, including those in Balikpapan and Cilacap, rarely
\nexperienced troubles, he said.<\/p>\n
The Balongan refinery was developed by Pertamina and a number
\nof foreign contractors, including Japan's JGC Corporation, Foster
\nWheeler of the United States and the Far East Trading Corp., a
\nPertamina affiliate company.<\/p>\n
Financing for the project was provided by a consortium which
\ngrouped Mitsui Corp., Marubeni Corp., Sumitomo, Itochu and 20
\nJapanese banks.<\/p>\n
The refinery has a crude oil processing capacity of 125,000
\nbillion barrels per day (bpd), with fuel products including
\nliquid natural gas (LNG), propylene, aviation fuel, automotive
\ndiesel oil, industrial diesel oil and gasoline.<\/p>\n
Pertamina's inspectorate general recently fired several
\nmembers of staff at the refinery for colluding with a supplier to
\nembezzle Rp 1 billion through buying low quality equipment at
\nmarked-up prices. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kuntoro-to-probe-alleged-fraud-at-balongan-refinery-1447893297",
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