Indonesia’s SKKMigas has suspended all oil, condensate and natural gas sell tenders following the arrest of its chairman last week on corruption charges.
The first project impacted by the suspension is a tender to sell around 400,000 barrels of condensate from Total’s Senipah complex that was due to close on Monday, an SKKMigas official told the Jakarta Globe.
SKKMigas chairman Rudi Rubiandini was arrested Wednesday for alleging taking a bribe from an executive with Singapore energy trader Kernel Oil.
Kernel Oil was a participant in Monday’s suspended tender, the Jakarta Globe said, worth at least $41.5 million based on July prices.
The trading firm was one of 40 companies authorized to buy oil and gas from SKKMigas. It has denied involvement in any graft.
SKKMigas sells excess oil and gas that cannot be used by state energy company Pertamina Persero.
It has conducted seven tenders this year, the Jakarta Globe said, selling Minas and Duri crudes and Senipah and Geragai condensate.
Last Wednesday, SKKMigas said it would ‘continue to normally run regardless the on-going investigation against the Chairman of SKK Migas by the Corruption Eradication Commission (KPK).’
Three other top SKKMigas officials were arrested Friday.
‘The heads of the regulators’ crude and natural gas commercial divisions, as well as the chief of operations support, were all suspended and barred from travel,’ the Jakarta Globe said.
Last weekend, prosecutors from the KPK seized documents from the office of SKKMigas’ interim chairman Johanes Widjornarko.
The KPK said Widjornarko is not a suspect and the document seizures were part of the investigation.
The agency also seized $200,000 from the office of a top energy ministry official, reports said.
Police seized $400,000 in cash from Rubiandini’s house when they arrested him last week.
SKKMigas has production sharing contracts with BP, Chevron and Exxon Mobil, among others.