Unocal to buy Nusamba's shares in two oil block

Unocal to buy Nusamba's shares in two oil block

JAKARTA (JP): The United States giant energy company Unocal
Corp. will acquire the shares of PT Nusamba, a business group
related to former president Soeharto, in its two oil blocks in
East Kalimantan in a bid to clear out traces of collusion,
corruption and nepotism in its ventures.

"The acquisition of the shares will be completed this week,"
an informed source at the state oil and gas company Pertamina
said Thursday.

The source said Unocal would buy out Nusamba's 10 percent
stake in each of the two production sharing contract (PSC) oil
blocks offshore the Ganal and Rapak areas in the province.

Nusamba, controlled by Soeharto's foundations, is chaired by
the former president's golfing partner Mohammad "Bob" Hasan.

Unocal will take the measure in response to a recent call from
Pertamina on foreign investors to sever ties with Soeharto's
family and cronies by acquiring their shares in their joint
ventures.

Pertamina said recently it had identified 159 contracts
entered into by the company which were awarded on the grounds of
collusion, corruption and nepotism during the Soeharto era. The
156 contracts include 15 contracts for gas and oil exploration
and production.

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

Unocal is the second foreign oil and gas contractor to meet
Pertamina's call after Atlantic Richfield Indonesia Inc. (ARII),
a subsidiary of the U.S.-based Atlantic Richfield Company (ARCO),
which recently ended its partnership with the Bimantara Group,
controlled by Soeharto's son Bambang Trihatmodjo, in its gas
operation in the Kangean block in East Java.

Bimantara was given a 10 percent stake in the gas block in
1992 by majority shareholders ARII and British Petroleum.

But, according to Pertamina, Bimantara has not injected
capital since. This has led to the dilution of its shares to an
insignificant amount.

Pertamina's data also indicates Soeharto's family and friends
have stakes in several other oil and gas blocks cross the
country.

Bambang, through his company PT Genindo Citra Perkasa, has a
9.375 percent stake in the Simenggaris block in East Kalimantan,
with the remaining shares owned by Pertamina (37.5 percent) and
Western Petroleum Pty Ltd of Australia (53.125 percent).

Also through Genindo, Bambang has a 35 percent stake in the
Sembakung block in East Kalimantan in partnership with Energy
Process Services Ltd (65 percent).

However, according to Pertamina's data, which was released
early this month, Bambang's stake in the two oil blocks in
Genindo has been acquired by Bulbul Salim and Erry Achmad
Basyari.

Bambang, through Treasure Bay Enterprise, also has a 35
percent stake in the Peudada block in Aceh with the remaining
shares owned by the U.S.-based Mobil (32.5 percent), and Taiwan's
Overseas Petroleum Investment Corporation (32.5 percent).

The fate of Bambang's shares in the block is unknown.

Bambang's brother Hutomo Mandala Putra, also known as Tommy,
through his company PT Humpuss Patragas, had a 51 percent stake
in the oil and gas block near Cepu, Central and East Java, with
the remaining shares owned by Australia's Amplex Cepu Pty Ltd. It
is unknown if Humpuss still has the stake in the block.

Tommy's sister Siti Hardiyanti Rukmana also known as Tutut,
through her company PT Citra Patenindo Nusa Pratama, had a 12.5
percent stake in the Abab, Raja and Dewa oil fields in South
Sumatra which are controlled by Pertamina. It is also unknown if
Citra still owns the shares.

PT Golden Spike Indonesia, a subsidiary of the Kodel Group,
was also considered "unclean" by Pertamina due to its partnership
with the Army's Special Force's (Kopassus) Kobame foundation for
developing the Pasiriaman block in South Sumatra.

The data released by Pertamina early this month says the block
is 40 percent owned by Pertamina and 60 percent by Golden Spike
and Kobame.

However, PT Golden Spike South Sumatra Ltd's manager Cholidy
Husin Reminton was quoted by Antara as saying Thursday that the
60 percent stake in the oil block was shared by Golden Spike (15
percent) and the government (85 percent). (jsk)