Pertamina denies alleged KKN in new contracts<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina dismissed
\nallegations that graft was involved in its multi-billion dollar
\nbusiness of importing petroleum and oil products.<\/p>\n
\"Based on the information we received from Pertamina, there
\nare no elements of corruption, collusion and nepotism in its oil
\ntrade. All its deals are transparent,\" Minister of Mines and
\nEnergy's spokesman Budhi Sulistyo said on Friday.<\/p>\n
Pertamina, in a written statement to the ministry, has denied
\na Reuters report, which was quoted by The Jakarta Post early last
\nweek, that there is no transparency in its export and import of
\ncrude oil and oil products.<\/p>\n
Traders in Singapore complained that Pertamina had made direct
\ndeals with international oil companies and select smaller
\ncompanies to buy petroleum and oil products, instead of staging
\nan open tender system.<\/p>\n
The deals were shrouded in mystery, the traders said, using as
\nan example Pertamina's deal with Singapore Petroleum Co. (SPC),
\nwhich they claim is backed by Petrocom -- a company related to
\nthe Indonesian conglomerate Nirwan Bakrie.<\/p>\n
Indonesia, though an oil exporting country, imports about 70
\nmillion barrels of crude oil per year to feed Pertamina's
\nrefineries. Due to the limited capacity of its refineries,
\nPertamina also imports about 15 percent of the fuel needed to
\nfulfill the domestic consumption of 52 million kiloliters per
\nyear.<\/p>\n
Trading of both of these products was conducted by two
\ncompanies linked to Soeharto's family and cronies, Perta and
\nPermindo, for about 20 years, until July of this year when, on
\nthe government's order, Pertamina canceled the contracts with the
\ncompanies and began to conduct the trading itself.<\/p>\n
Bakrie is one of the shareholders of Permindo.<\/p>\n
Budhi said that since July, Pertamina has been giving all
\npetroleum and oil product suppliers, including major oil
\ncompanies, refineries and international oil traders, the
\nopportunity to make open tenders to the company.<\/p>\n
Pertamina will choose suppliers which offer the most
\ncompetitive price, the most favorable terms of payment and are
\nable to deliver supplies on time and at the volume demanded.<\/p>\n
\"In this case, Pertamina will only deal with companies which
\nhave international reputations in oil trading,\" Budhi said.<\/p>\n
Budhi quoted Pertamina's statement as saying that SPC is one
\nof the suppliers which meet the criteria set by Pertamina,
\nrefusing, however, to comment on the alleged connection between
\nSPC and Bakrie.<\/p>\n
Nor did Pertamina say if it had conducted open bidding to
\nselect the suppliers.<\/p>\n
Pertamina's director for general affairs Hadi Daryono, earlier
\nsaid that Pertamina had signed one-year contracts to buy crude
\noil directly from several producers, including Malaysia's
\nPetronas and Saudi Arabia's Aramco. It is also seeking a similar
\ncontract to buy oil products from Kuwait Petroleum.<\/p>\n
Only a certain portion of the country's demands for crude oil
\nand oil products will be bought from traders, he said.<\/p>\n
He stated that Pertamina could save between 10 and 15 cents
\nper barrel under the direct purchase scheme.<\/p>\n
A source at Pertamina told The Jakarta Post that Pertamina's
\nmove to cancel contracts with Permindo and Perta, and to cut out
\nthe role of middlemen in its oil trade, has frustrated some
\ntraders in Singapore who had fared well during the era of
\nPermindo and Perta.<\/p>\n
\"The frustrated people, whom we have well identified, now
\nspread negative rumors to undermine this new, better trading
\nsystem,\" the source said. (jsk)<\/p>",
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