Pertamina cancels Soehartos' oil and gas contracts
Pertamina cancels Soehartos' oil and gas contracts
JAKARTA (JP): State oil and gas company Pertamina annulled
contracts with former president Soeharto's children and
associates, and ordered them to sell their stakes in oil and gas
projects as part of its continued drive to root out traces of
corruption, collusion and nepotism.
The Ministry of Mines and Energy said in a statement on Friday
Pertamina had ordered PT Humpuss Patragas, owned by Soeharto's
son Hutomo "Tommy" Mandala Putra, to sell its 51 percent stake in
the Central East Java oil and gas block in East Java to its
Australian partner Ampolex Cepu Pty. Ltd., a subsidiary of
American oil and gas company Mobil Oil Inc.
"(Pertamina) is awaiting the approval of Minister of Mines and
Energy (Kuntoro Mangkusubroto) for the action," the ministry
said.
Humpuss Patragas is one of 159 companies controlled by
Soeharto's family and associates which were accused by the
government last year of having secured contracts with Pertamina
through their political connections.
Pertamina annulled or reviewed 152 contracts last year
suspected of being tainted by corruption, collusion and nepotism.
Pertamina has taken action this year against seven contracts,
including the oil exploration and production contract awarded to
Humpuss Patragas.
The government could save Rp 212 billion and US$92.9 million
by annulling and reviewing the contracts.
The ministry said Pertamina also forced Tommy to sell his
stake in the Dwi Putra liquefied natural gas tanker to his
Japanese partners, Mitsui OSK Lines and Nippon Yusen Kabushuki
Kahisa.
PT Genindo EPS, a subsidiary of the Bimantara Group controlled
by Soeharto's son Bambang Trihatmodjo, was forced to transfer its
stake in the Sembakung oil and gas field in East Kalimantan to PT
Equatorial of Canada.
Pertamina forced Soeharto's golfing partner Mohammad "Bob"
Hasan to buy natural gas from Pertamina for his PT Kertas Kraft
Aceh pulp and paper plant at the standard price of $2 million per
million British thermal unit (MMBTU).
The ministry said that when Soeharto was still in power, Hasan
paid Pertamina $1.5 million per MMBTU.
Pertamina also annulled a contract with PT Ogsipiras Basya
Pratama, reportedly owned by the son of former minister of mines
and energy IB Sudjana, for the development of a liquefied
petroleum gas plant.
Pertamina also terminated a contract with PT Triharsa Bimanusa
Tunggal, owned by Soeharto's daughter Siti Hardijanti Rukmana,
for the development of a fuel pipeline across Java.
The ministry also said the Attorney General's Office was still
investigating suspected corruption by Pertamina and government
officials during the development of a refinery in Balongan, West
Java.(jsk)