Indonesia’s Corruption Eradication Commission, the Komisi Pemberantasan Korupsi (KPK), has reportedly launched an investigation into possible graft relating to the historic procurement of liquefied natural gas by national oil company Pertamina.
KPK officials have already conducted searches at a number of locations, including Pertamina’s Jakarta headquarters and private homes, for documents relating to the alleged corruption, with the probe focusing on LNG deals transacted between 2011 and 2021.
Acting KPK spokesperson Ali Fikri said: “So far we have obtained several documents related to this case.”
Local media reported that eight people, including employees and ex-employees of Pertamina and employees of Italy’s Eni Muara Bakau asset, would be called as witnesses before the commission as part of the investigation.
A spokesperson for Eni told Upstream that it “does not comment on ongoing investigations” and Pertamina had not responded to emailed requests for comment at the time of publication.
“The announcements of the parties who have been named as suspects, the chronology of the alleged acts of corruption committed… will be conveyed when attempts are made to [en]force arrests or detentions,” Ali told reporters.
Gas produced from fields on Eni’s Muara Bakau block offshore East Kalimantan including Jangkrik and Jangkrik North East is used as feedstock at the Bontang LNG project onshore the same province.
In June 2015, Eni signed two agreements with Pertamina for the sale and purchase of LNG from the Jangkrik fields development project. Under the agreements, Pertamina was to buy 1.4 million tonnes per annum from 2017.
“The signing of these agreements represents a key milestone for the Jangkrik field development project… and confirms Eni’s commitment in supplying gas for the development of the Indonesian domestic market,” Eni chief executive Claudio Descalzi said at the time.
“I’m very pleased with the strong and fruitful relationship with the Indonesian authorities, Pertamina and our joint-ventures partners in Jangkrik,” Descalzi added.