Pertamina conducts field audit on community development programs

State oil and gas firm Pertamina has this year conducted on-the-spot examination over community development programs carried out by three oil and gas production sharing contractors so as to ensure that the programs had in fact benefited the community in their operational areas, Suara Pembaruan reported on Saturday.

So far Pertamina had relied merely on the reports filed by the contractors, the newspaper quoted as saying Luluk Harjanto, a well placed executive at Pertamina?s production sharing management section.

The three contractors were TotalFinaElf, Devon Energy and Repsol-YPF (formerly YPF-Maxus), Luluk said on Friday, according to Suara Pembaruan. Their oil and gas blocks are located in several areas including the Sunda Straits, southern Sumatra, East Kalimantan, East Java and Papua.

Luluk said TotalFinaElf alone will this year spend up to Rp 12 billion for community welfare projects in East Kalimantan where it operates. (US$=Rp9350)

So far, Pertamina has recompensed 85 percent of the total amount used by oil contractors for community development activities, and 70 percent of the funds spent by gas contractors, in accordance with production sharing contract agreement signed by the two sides, Luluk said.

?With the on-the-spot audit, we could know whether we shall have to recompense part of the amount they had spent on community development activities,? he said. Pertamina will this year conduct similar audit on other contractors, Luluk added. (*)