Dahlan Iskan has lately become the target of rumors. The direct appointment of a partner to operate four old oilfields at Cepu Block seems to be dragging down this minister in charge of state-owned enterprises. His scribble at the corner of Gunawan Hadi Saputro's personal letter is being interpreted as his indirect 'instruction' to state-owned oil company Pertamina, to ensure that Geo Minergy Corp becomes the company in charge of Cepu. Gunawan is the company's general manager whose core company Geo Corporation Ltd is based in Hong Kong.
Dahlan's handwriting turned out to be a godsend for Geo Minergy. The note or disposition addressed to Pertamina CEO Karen Agustiawan on July 22 was followed-up super fast. The next day the subject was discussed at a Pertamina executive meeting, and less than a month later an agreement was signed between Pertamina and Geo Minergy.
When Tempo met Dahlan on three occasions in Jakarta, Padang and Pamekasan, Madura he denied ever issuing such an instruction. He also said that the rejection by some Pertamina unions to honor such agreements was normal.
The interview below accompanies the cover story of this week's Tempo English, "What Friends are For", available in print.
Did you know that Pertamina directly appointed Geo Minergy to become its production sharing partner?
I don't believe it. It's not likely to be done without following procedures. Such a direct appointment is unlikely. There is bound to be some kind of due diligence involved.
Are you close to Gunawan Hadi Saputro?
Gunawan is an oilman. I once asked him to help out, not at the Jawa Pos newspaper but at a company in East Java, by the name of Petrogas. But I don't believe he was directly appointed. For me, anyone [can take part] as long as he has the right technology.
What about charges of a special relationship with him?
That's just people talking. Should I be denying everything? Go ahead and write whatever you hear. I'm not afraid, I'm not in the habit of doing things like that. I am close to all directors.
We have evidence of a 'disposition' you signed, given to Pertamina CEO Karen Agustiawan on the personal correspondence of Gunawan Hadi Saputro.
I have never issued that disposition. If you don't believe, please check directly with Pertamina. Was the disposition from me? Am I a dispenser of dispositions?
Yet, it's that disposition or memo which was used to enable Geo Minergy to become a partner of Pertamina.
What memo? Go find it.
The appointment of Geo Minergy without an open tender was protested by some employees of Pertamina. What do you think?
Protests are normal.
What is the status of the program to raise Pertamina's oil production to 200,000 barrels per day, also known as the 200K Brigade Program?
I will evaluate it at the end of the year. I don't have the numbers yet. But so far, there have been increases. Pertamina must raise its oil production, because they have been buying oil from overseas or acquiring oilfields in Venezuela, Algiers and other countries. This is not easy because it's been difficult to find oil these past two years.
What's the other alternative?
I note that Pertamina has thousands of old oil wells that are either no longer productive or produce very little because they are shallow 500 to 1,000 meters deep. They are all legacies of the Dutch and use old technology. Today's drilling uses newer technology. If those wells can be restored by using new technology, production can increase, not as sizable as Natuna, but it adds up. Such a technology is what we want access to. Right now, we have three kinds of different technologies. Can the owner of such a technology raise production? Well, go ahead and try it.
