ANTI-GRAFT COMMISSION TO INVESTIGATE OIL PRODUCTION

Jakarta, July 11 (ANTARA) - The Corruption Eradication Commission (KPK) will investigate alleged mistakes in the mechanism of oil lifting and mechanism with regard to already sold oil and gas, KPK deputy chairman Haryono said.

Haryono said that the oil and gas lifting and calculations were suspected to be contradictory to the facts on the ground.

The calculation of oil and gas exploration proceeds was not carried out in the oil drilling fields but in Jakarta by a number of government agencies, he said.

Haryono said that the calculation mechanism of that kind was quite possible to result in mistaken data because those who carried out the calculations did not know the conditions in the field, including data on exploited natural wealth.

"We have to secure a guarantee that such information is valid," he added.

He said that the results of calculations made in Jakarta must match the amount of oil and gas pumped up in the mining locations.

For this purpose, the KPK and the Upstream Oil and Gas Regulating Body (BP Migas) agreed to set up a technical team.

The team will be charged with the task of evaluating various oil and gas management practices, particularly those related to practices so far considered not transparent.

Haryono said that the team would work to solve various technical problems, among others those related to the lifting mechanism, supervision mechanism which was viewed to be still weak and improvement in the asset management mechanism.

BP Migas Chief Priyono said his side hailed the KPK's efforts to improve management in the oil and gas sector. "We are ready to carry out improvement," he said.

The KPK's initiative to improve management in the oil and gas sector was based on a report by the State Audit Board (BPK).

The BPK has pointed out that it had doubts about the results of the oil and gas lifting calculations.