Pertamina faces potential criminal charge

The Ministry of Energy and Mineral Resources (MEMR) has warned state-owned oil and gas firm PT Pertamina of the risk of facing criminal charges for selling LNG without prior approval of the government, Kontan reported Saturday.

The paper said that the ministry issued the warning letter December of last year after Pertamina sold LNG to global traders Vitol Group and Glencore, worth a combined US$90 million, in September of last year without prior approval of related authorities.

The paper quoted Oil and Gas Upstream Director at the ministry Naryanto Wagimin as saying according to existing regulation, the LNG sale must first be informed to the upstream oil and gas authority SKK Migas, obtain approval from the Minister of Energy and Mineral Resources, and get export permit from the Ministry of Trade.

?As acting director general of oil and gas (at the time), I?ve issued two warning letters to Pertamina,? Naryanto told Kontan, adding the risk of criminal charges for selling the LNG without prior approval of related authorities.

But Pertamina Media Manager Aditma Sardjito said the company has already obtained the necessary approvals. (*)