Migas has nothing to do with Kernel Oil

The Directorate General of Oil and Gas, better known in the industry as ?Migas?, said it does not have any relation with oil trader Kernel Oil, which allegedly bribed SKK Migas? now-suspended Chairman Rudi Rubiandini.

Migas stated in its website that as an institution at the Ministry of Energy and Mineral Resources (MEMR), it is responsible for issuing business licenses to companies involved in oil and gas downstream sector, which such refinery products as diesel oil, bunker oil, gasoline with specific RON contents.

The appointment of companies to sell crude oil from the downstream sector is the right of upstream authority SKK Migas based on the BPMIGAS Chairman Decree No. KPTS-20/BP00000/2003-SO dated Aprill 15, 2003 regarding Procedures of Appointment of the Sellers of Government Crude Oil/Condensate Shares. The decree is line with the MEMR Regulation No. 9/2013 regarding the Organization and Procedures of SKK Migas which states in Chapter 3 Article g that SKK Migas carries out the functions of appointing the sellers of the government?s crude oil and condensate shares for the maximum benefits of the people.

Rudi was arrested by the Corruption Eradication Commission (KPK) on Wednesday on charges of receiving bribes amounting to US$700,000 from an executive of Kernel Oil through an intermediary.

Editing by Johannes Simbolon