SKK Migas to audit vendors of oil, gas contractors

By Bernard Loebs

Petromindo

Upstream authority SKK Migas will start this year auditing vendors of oil and gas contractors in a bid to help prevent corrupt practices in the country?s oil and gas industry.

SKK Migas Chairman Amien Sunaryadi said on Monday that the plan to audit the vendors of the oil and gas contractors is based on the ?right to audit? clause which has been introduced since 2015 under which vendors of the oil and gas contractors operating in the country must be ready for audit.

Amien said that SKK Migas will also involve auditors from outside the institution in carrying out the auditing process. The audit process is expected to help prevent the marking up of contractors? expenses which covered by the government through the cost recovery mechanism.

According to him, there are currently 5,142 vendors, 85 oil and gas contractors, and 20 traders engaged in upstream oil and gas industry in the country.

Editing by Reiner Simanjuntak