Firm allegedly involved in bribery case now participating in crude tender

Wednesday, August 14 2013 - 03:32 PM WIB

Upstream authority SKK Migas said that Kernel Oil, which allegedly bribed, the agency?s suspended Chairman Rudi Rubiandini, is among the companies that are participating in the tender for the contract to sell Indonesian crude this month, according to Kompas daily.

SKK Migas? Secretary Gde Pradnyana said the contract will be awarded to a company that offers the highest price for the crude owned by the government.

?That?s the mechanism of tender. The contract will be awarded to companies that offer the highest price,? he said.

Previously, it was reported that Rudi has accepted bribes twice amounting US$700,000 from an executive of Kernel Oil identified by the local media as Simon Tanjaya. The money was given to a man identified by the local media as Deviardi a.k.a Ardi who later handed it over to Rudi. Rudi was arrested by the Corruption Eradication Commission (KPK) in the early morning hours of today at his residence in South Jakarta and has been named a suspect.

Gde said he did not know both Simon and Ardi. ?I don?t know who they are,? he said.

Kernel, based in Singapore, is one of the 40 oil traders registered at SKK Migas. Gde noted however the firm had never won any oil trading contract tender throughout the year.

Elan Biantoro, SKK Migas? spokesperson, explained that SKK Migas holds the right to appoint companies to sell some of the government?s crude. The government is entitled to receive 85 percent of the oil production of the oil and gas contractors. Most of the oil is delivered to refineries owned by state owned oil and gas Pertamina and some is exported through traders.

?SKK Migas assigns traders to only sell crude owned by the government,? he said.

According to the local media, Kernel Oil is headquartered at 7500A Beach Road #10-318/321, The Plaza, Singapura. In Indonesia, the company has office at Equity Tower on 35th Floor Suite B in SCBD business district on Jl Jenderal Sudirman Kav 52-53, South Jakarta.

Editing by Johannes Simbolon

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