Bimantara 'no longer has stake in Arco gas field'

Bimantara 'no longer has stake in Arco gas field'

JAKARTA (JP): The Bimantara group, controlled by Bambang
Trihatmodjo, a son of former president Soeharto, no longer holds
a share in the Kangean gas block in East Java due to dilution of
its stake, a state oil and gas company Pertamina official said on
Tuesday.

A spokesman for the Pertamina directorate responsible for the
supervision of foreign contractors, Sidick Nitikusuma, said
Bimantara's 10 percent stake in the gas operation had been
diluted to an insignificant amount as a result of the group's
failure to inject fresh capital.

The company purchased a 10 percent stake in the gas block from
Atlantic Richfield Indonesia Inc. (ARII) and British Petroleum in
1992. However, since then it has not matched fresh capital
injected into the venture by its partners and as a consequence,
its share in the operation has diminished to an insignificant
amount.

"Thus, the company no longer has any shares in the gas block,"
Sidick said.

The composition of shares in the block is now unknown.

Previously, the block was 54 percent owned by ARII, which is a
subsidiary of the U.S.-based Atlantic Richfield Company (ARCO).

The Kangean block produces 330 million cubic feet of gas per
day.

Pertamina said recently it has identified 159 contracts within
the company which were awarded on the grounds of collusion,
corruption and nepotism under the Soeharto regime.

Pertamina has long been associated with the Soeharto family
and cronies, who are believed to have profited handsomely from
Indonesia's lucrative oil and gas reserves during the former
president's 32-year rule.

Pertamina's director of exploration and production, Priyambodo
Mulyosudirjo, said earlier that Pertamina had urged its foreign
production sharing contractors to get rid of Soeharto's family
and cronies by taking over their shares.

Sidick also said that Pertamina was investigating allegations
that some oil and gas contractors routinely employ expatriates
without the correct work permits.

An informed source said on Tuesday that Pertamina had recently
been told that 15 expatriates, mostly from Britain, had routinely
entered the country since 1997 to work for the British-based
Premier Oil without the correct visas and permits.

"We have yet to establish if there is any truth in the
allegations," Sidick said. (jsk)