Pertamina to rework Humpuss tanker deal<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina will
\nrenegotiate tanker fees with Pacific LNG Transport Ltd, an
\naffiliate of Soeharto family-owned PT Humpuss, for the shipment
\nof liquefied natural gas (LNG) from Bontang, East Kalimantan, to
\nforeign markets.<\/p>\n
Pertamina president Soegianto said on Tuesday the fee charged
\nby Pacific's Dwiputra tanker was much higher than that of other
\noperations to the same destinations.<\/p>\n
Markup practices caused a total loss of US$6 million for
\nPertamina and its production-sharing contractors, including Vico
\nIndonesia, Unocal Indonesia, and Total Indonesie, Soegianto said
\nat a hearing between Minister of Mines and Energy Kuntoro
\nMangkusubroto and the House of Representatives's Commission V for
\nmines and energy, trade and industry, manpower, cooperatives,
\nenvironment and investment.<\/p>\n
Vico, a subsidiary of the U.S. energy company Virginia Co,
\nUnocal, a subsidiary of the U.S. Unocal Corp, and Total, a
\nsubsidiary of Total of France, are suppliers of natural gas to
\nthe Badak LNG plant and co-owners of the plant.<\/p>\n
Seogianto said Pertamina and Pacific had agreed to renegotiate
\nthe fee on Friday.<\/p>\n
\"We shall ask the company to reimburse the total loss it has
\nimposed on us over the past 10 years,\" Soegianto said.<\/p>\n
Aside from the Dwiputra tanker, Humpuss, which is controlled
\nby former President Soeharto's sons Hutomo \"Tommy\" Mandala Putra
\nand Sigit Hardjojudanto, and its affiliates operate two other
\ntankers, including the Eka Putra and Surya Aki tankers, to ship
\nLNG from Indonesia.<\/p>\n
Eka Putra, the world's largest LNG tanker, is owned by
\npublicly listed transportation company PT Humpuss Intermoda
\nTransportasi, an affiliate of PT Humpuss. Surya Aki is owned by
\nMCGC International.<\/p>\n
Another son of Soeharto, Bambang Trihatmodjo, is also active
\nin shipping the country's LNG to export markets through PT
\nSamudra Petrindo, an affiliate of the Bimantara Group.<\/p>\n
Soegianto said Pertamina had investigated the operations of
\nall the LNG tankers and found their prices were competitive with
\nthe exception of Dwiputra.<\/p>\n
Soegianto also said Pertamina had completed its review of all
\ncontracts awarded to Soeharto's family and cronies. He said
\nresults would be submitted to Kuntoro by the end of the month.<\/p>\n
He earlier said Pertamina had awarded between 120 and 140
\ncontracts to Soeharto's family and cronies during his 32-year
\npresidency. Soeharto's family dominates the shipping of LNG,
\ncrude oil and fuel, gas pipeline network development, geothermal
\npower and the development of refineries and many other aspects of
\nthe hydrocarbon sector.<\/p>\n
Soegianto said the contracts could be retendered, terminated
\nor renegotiated.<\/p>\n
\"Pertamina will only give some suggestions, but the government
\nwill make the decision.\"<\/p>\n
Soegianto said Pertamina had improved its efficiency by
\nsevering several brokerage contracts with Soeharto's family and
\ncronies.<\/p>\n
He cited as an example how the company would save about $29.45
\nmillion this fiscal year by directly importing and exporting
\ncrude oil and fuel.<\/p>\n
These were monopolized for decades by Penta Oil Marketing Ltd,
\ncontrolled by Tommy, Soeharto-led foundations and Soeharto's
\ncrony Mohamad \"Bob\" Hasan; and Permindo Trading Oil Co. Ltd,
\nwhich is controlled by Bambang and his associates including
\nRossano Barack and Nirwan Bakrie.<\/p>\n
Pertamina started to export and import fuel and crude oil in
\nJuly.<\/p>\n
Pertamina has also terminated contracts with PT Catalyst
\nIndopratama, owned by Tommy, to procure catalysts and chemicals
\nfor the production of fuel oil in the Balongan refinery in West
\nJava. The company reportedly made huge markups in the price of
\nthe catalyst, causing massive losses to Pertamina for years.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-rework-humpuss-tanker-deal-1447893297",
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"sponsor": "Okusi Associates",
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