PSCs transfer abandonment funds to the government

A number of production sharing contractors have transferred a total of Rp 2 trillion (US$ 166 million) in abandonment and site restoration funds to account jointly managed by the contractors and upstream oil, gas authority BPMIGAS, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said as quoted by Antara.

Purnomo said the included $45.52 million from state-owned oil firm PT Pertamina EP, $10.89 million from PT Medco E&P, US$5.21 million from Kondur Petroleum SA, $809.9 thousand from Kangean Energy Indonesia and $448.7 thousand from Kalrez Petroleum Ltd.

The minister said the funds were usually kept in the contractors' accounts had now been transferred to the government's account.

Earlier, US oil, gas firm ConocoPhillips has also returned $104 million of investment credit over charge for 2006-2007 period.

KPK Chairman Antasari Azhar commended the government and the contractors for their immediate response to the anti-graft body's recommendation.

Antasari said that the commission has issued the recommendation because it saw that the oil and gas sector was not managed well.(*)