SKK Migas Recalculates Cost of Recovery

TEMPO.CO, Jakarta- The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) will recalculate the shortage of state revenues reported by the Supreme Audit Agency (BPK). According to Zudaldi Rafdi, the communication and protocol sub-department head, SKK Migas and the contractors (KKKS) were preparing the documents needed to follow up on the BPK findings.

BPK found US$ 81.6 million short in the 2013 revenue from the oil and gas sector. As much as US$ 68.55 million of the shortage was caused by eight contractors who failed to comply with the cost of recovery. The remaining US$ 13.05 was caused by non-payment of taxes.

Zudaldi said that some of the findings surfaced because of new regulations from the government that affected ongoing contracts. "As a result, disputes with the contractors often arose. Disputes that had dragged on led to the shortages revealed by the BPK audit," he said yesterday.

If there is overpayment in the cost of recovery reimbursed by the state after verification, corrections will be made. Zudaldi said that the corrections would be calculated in the cost of recovery next year. "The mechanism would be accetable as long as it is within the period in the contract. Moreover, the contract cycle for upstream oil and gas is not for just a year, but 30 years," he said.

According to BPK chairman Hadi Poernomo, other than the contractors' failure to pay in full,  state losses from the oil and gas was also caused by SKK Migas' negligence. Based on BPK investigation, all the eight contractors involved should have paid up the cost  of recovery.

The eight contractors are British Petroleum Indonesia, CNOOC SES, Citic Seram Energy, Petrochina International Jabung, Hess Indonesia Pangkah, Vico Indonesia, Energi Mega Persada, Malacca Strait S.A. and Star Energy (Kakap).

BERNADETTE C MUNTHE | ANGGA WIJAYA | NURUL MAHMUDAH