"We are prepared but the transition must be made in line with Pertamina`s rules. The existing system has been running transparently and therefore may not be changed," PT Pertamina President Director Karen Agustiawan said.
Jakarta (ANTARA News) - PT Pertamina President Director Karen Agustiawan has stated that the state-owned oil and gas company is ready to take over the management of the country`s crude from SKK Migas.

"We are prepared but the transition must be made in line with Pertamina`s rules. The existing system has been running transparently and therefore may not be changed," she said here on Thursday.

Earlier, Energy minister Jero Wacik had announced that oil-and-gas regulator SKK Migas would no longer manage state-owned crude and condensate, and that the responsibility would be handed over to Pertamina.

Jero had said Pertamina could either exchange the crude with that of other producers to meet its refinery standards, or modify its refineries to be able to use the crude, and export it through a tender.

Recently, the Corruption Eradication Commission (KPK) named former chief of SKK Migas, Rudi Rubiandini, as a suspect in a bribery case relating to tenders for crude and condensate.

Agustiawan stated that she would examine the government�s offer carefully and through a transparent process.

"It cannot be just handed over to Pertamina all of a sudden," she said, adding that the company expected to allowed to swap crude with that of other producers to meet its refinery standards.

Meanwhile, SKK Migas commercial deputy Widhyawan Prawiraatmadja pointed out that all state-owned crude should be processed in refineries of Pertamina on account of it being a state-owned company and distributor of subsidized fuel oils.

"Therefore, the goal now is to optimize the state`s crude," he said, adding that Pertamina could either swap it with that of other producers or sell it through a tender.

Indonesia produces some 800,000 barrels of crude every day, of which 85 percent belongs to the state and the rest to contractors.

Approximately 80 percent of the state`s portion goes to Pertamina, while the rest is exported.

SKK Migas has so far exported a portion of the state`s crude via a third party selected through a tender.

The state has been exporting crude because the crude quality does not meet Pertamina`s refinery standards.(*)

Editor: Heru Purwanto
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