Report: BPK finds Rp4t undue costs in cost recoveries
Thursday, April 14 2016 - 01:54 PM WIB
The BPK found irregularities in the cost recovery claimed by among others Chevron Pacific Indonesia, Pertamina EP, CNOOC SES Ltd, and Premier Oil Natuna Sea B.V, Tempo said.
"There are undue costs imposed on the cost recovery posts," the BPK reported to the House of Representatives on Tuesday, April 12,
The seven working areas are the South Natuna Sea B block operated by ConocoPhillips Indonesia Inc. Ltd., Corridor block (ConocoPhillips (Grissik) Ltd), the Rokan block (PT Chevron Pacific Indonesia), . Eks-Pertamina block (PT Pertamina EP), South East Sumatra block (CNOOC SES Ltd), Mahakam block (Total E&P Indonesie) and Natuna Sea A block (Premier Oil Natuna Sea B.V)
Total E&P Indonesie and patner Inpex Corp. claimed the largest undue costs of Rp 936.29 billion in its cost recovery, according to Tempo. The undue costs included development drilling costs and investment credit claims, investment credit claims that are not listed in their work plans, the cost of tax for the issuance of underpayment assessment tax letter (Surat Ketetapan Pajak Kurang Bayar), and the costs of handling shallow gas release incident.
The BPK identified 54 main problems that caused deficit in the state oil and gas revenue sharing. The main reason, according to BPK, is the correction of the state share calculation, invalid or incomplete proof of accountability, and violations against regulations.
Problems occured, the BPK said, because contractors failed to comply with regulations, and different interpretation of investment credit claims by upstream authority SKK Migas and the contractors. Other causes included negligence by officials in verifying data supervising their subordinates.
Meanwhile, SKK Migas?s Chairman Amien Sunaryadi said he has not received the reports. He promised to make a public statement once he reads the report. (*)