SKK Migas hopes corruption case won?t hamper Tangguh LNG renegotiation process
Friday, August 16 2013 - 02:39 AM WIB
The upstream oil and gas authority SKK Migas expects that the renegotiation process with China over the Tangguh LNG selling price would not be hampered by the current high profile corruption case involving its chairman.
The now suspended chairman of SKK Migas, Rudi Rubiandini has been detained by the Corruption Eradication Commission (KPK) since Wednesday over allegation that he has received bribes from a top official of a Singapore-based oil trading firm Kernel Oil. SKK Migas Deputy Chairman Johanes Widjonarko has assumed leadership of the upstream oil and gas authority.
?The Tangguh LNG renegotiation process with China should proceed and must not be affected despite the emergence of the (alleged) bribery case being investigated by KPK,? SKK Migas Secretary Gde Pradnyana told Petromindo.com Friday.
He is confident that the renegotiation talks would start soon.
A source, however, told Petromindo.com that the renegotiation process could be disrupted as the KPK is expected to slap a travel ban on a number of senior KPK officials to facilitate the ongoing investigation process.
?Pak Wawan (Deputy of Commercial Control at SKK Migas, Widhiyawan Prawiraatmadja) and Pak Popi A. Nafis (Head of Gas Commercialization Division at SKK Migas) will be questioned by KPK. This could hamper the renegotiation process with China, which is scheduled for August,? the source said.
The KPK is also expanding its investigation process into the possibility of the involvement of other officials at the Ministry of Energy and Mineral Resources in the case as the commission on Thursday raided the office of the Secretary General of the ministry, and found US$200,000 in a black bag of what is suspected as part of the bribe money. KPK has so far confiscated a record of more than $1.2 million in cash in the bribery case.
The government is struggling to get a better price for the Tangguh LNG exported to China?s Fujian province as the price of US$3.5 per mmbtu under the current contract is deemed too low. In comparison, the price of LNG in the domestic market has now reached $5-6 per mmbtu.
President Susilo Bambang Yudhoyono in May of last year issued a decree appointing Minister of Energy and Mineral Resources Jero Wacik to lead the government?s team tasked in renegotiating the Tangguh LNG selling price to China. Officials at SKK Migas and the ministry are part of the team, which has a mandate to conclude the renegotiation process by end of this year.
Editing by Reiner Simanjuntak