BPKP will help internal control at oil and gas operations

Upstream authority BPMIGAS has agreed to cooperate with State Development Finance Comptroller (BPKP) to promote good governance practices and risk management assessment in oil and gas exploration activities in the country.

The memorandum of understanding (MoU) document on the cooperation was signed by BPMIGAS Chairman R. Priyono and BPKP Chairman Mardiasmo in Jakarta on Wednesday. The agreement covers cooperation in the field of good governance, risk management assessment, internal control system and supervision.

In his speech after the signing of the agreement, Priyono said that the improvement of the internal control system was needed to ensure all oil and gas exploration and production activities were efficient, effective, transparent and accountable.

In addition, BPMIGAS also asked BPKP to help the agency conducts an internal control and diagnostic assessment on internal control system. ?Without having effective internal control system, BPMIGAS will be unable to manage upstream oil and gas operations effectively,? Priyono added.

BPMIGAS received unqualified opinion from state audit agency (BPK) for three consecutive years thanks to the agency?s improvement in good governance practices and in internal control.

Editing by Roffie Kurniawan