Indonesia's Pertamina Replaces 'Problematic People' Amid Graft Pro
JAKARTA, Nov 25 (Reuters) – Indonesia's Pertamina has replaced "the problematic people" at its oil trading unit, the energy minister said on Wednesday, as the state oil and gas company looks to restore its image amid a corruption investigation.
The country's anti-graft agency, the Corruption Eradication Commission, has launched a preliminary investigation into Pertamina's trading arm, Petral, after an independent audit earlier this month revealed clear signs of fraud.
The administration of President Joko Widodo hopes a cleanup of Indonesia's oil and gas sector will improve investment in Southeast Asia's biggest crude producer after a series of scandals.
"Pertamina must clean it up and they have already done a lot. Problematic people have been replaced," Energy Minister Sudirman Said told reporters.
Pertamina, which is in the process of dismantling Petral, suspended four of the unit's employees this week for alleged misconduct, CEO Dwi Soetjipto said on Monday, without providing any names.
A spokesman for the Petral unit could not immediately be reached for comment. At the time that the disbanding of Petral was announced in May, Petral officials denied any wrongdoing.
Petral, which until this year had assets of $2 billion, held a near monopoly on the trading of crude and oil products in and out of the country, keeping Indonesia supplied with about a third of its daily oil needs.
"The aim of the Petral audit was an internal clean-up and if there are indications of violations they must be punished," Said said.
The Petral audit - conducted by Australian forensic specialist KordaMentha - showed intervention by third parties resulted in Pertamina paying higher prices for fuel and crude imports, CEO Soetjipto said earlier this month, without naming any specific countries or companies.
The audit's results will be presented to parliament next week.
Pertamina's new vehicle for oil purchasing, the Integrated Supply Chain, has yielded more competitive pricing, with efficiency savings of $103 million at the end of the third quarter, the company has said.
(Additional reporting by Wilda Asmarini and Agustinus Beo Da Costa; Writing by Randy Fabi; Editing by Tom Hogue)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension