SBY berates Pertamina ‘excuses’, demands it take responsibility

Ika Krismantari and Alfian ,  The Jakarta Post ,  Jakarta   |  Tue, 01/06/2009 7:23 AM  |  Headlines

WHEN THE PUMPS RUN DRY: Motorcycle drivers line up at a pump at a fuel station in Palmerah, Jakarta, on Monday. Many fuel stations were out of gasoline despite claims by state oil and gas company Pertamina that it had increased supply to Jakarta and several other cities over the past few days. (JP/Arief Suhardiman)

President Susilo Bambang Yudhoyono on Monday slammed PT Pertamina for "making excuses" about a recent scarcity of Premium gasoline and diesel, saying the state oil and gas company should accept full responsibility for the debacle.

On Sunday, Pertamina brushed aside criticism about its response to the shortages, saying the incident had been isolated to a small numbers of gas stations and that supply delays were mostly due to bank closures during the holiday season and the introduction of a new payment system.

"It's only excuses from the Pertamina management, who said it's [because of] holidays [and] introducing a new system. That's wrong," Yudhoyono said in a speech on the opening day of trading at the stock market Monday.

"There is no such thing as holidays when it comes to serving the people. There is no such excuse.

"The state cannot sleep when running the government to serve the people. This applies to all government officials in the country. Centrally and locally."

As the sole distributor of subsidized fuels in the country, Pertamina has come under severe criticism amid a spate of recent fuel shortages.

Pertamina came under fire recently for a recent scarcity of 3-kilogram liquefied petroleum gas (LPG) canisters that made a mockery of the company's drive for the public to convert from kerosene to the gas.

Even the President has boarded the Pertamina slander wagon.

Monday's outcry was Yudhoyono's second aimed at Pertamina's management, which has been headed by Ari Sumarno since 2006. He first chided the company in mid 2008 amid a shortage of LPG.

Pertamina aims to reduce the government's fuel subsidy by promoting the use of LPG to replace the heavily subsidized kerosene. Lack of preparation has marred the program from the outset.

Many believe Pertamina's problems could be alleviated were the government to allow the private sector to share the burden of distributing fuels.

Existing regulations allow private firms to distribute subsidized and nonsubsidized fuels, but the government has so far retained Pertamina as the sole distributor of the subsidized fuels, claiming those other companies do not have a sufficiently large network of gas stations.

So far, other distributors operating in the country, including the local arms of Royal Dutch Shell Plc. and Malaysian state oil and gas firm Petroliam Nasional Bhd. (Petronas), are allowed only to distribute nonsubsidized fuels.

Pertamina claimed Monday that the distribution of Premium gasoline and diesel in the country had returned to normal.

However, Pertamina's spokesperson Anang Rizkani Noor said a number of gas stations in greater Jakarta were still at risk of running out of fuels because they were still awaiting late deliveries.

There are about 600 gas stations in greater Jakarta.

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Petronas signs accord with two firms on Uzbek project

KUALA LUMPUR: Petronas has signed a heads of agreement with Uzbekneftegaz (UNG) and Sasol Ltd of South Africa to develop the Uzbekistan gas-to-liquids (GTL) project.

The partners are currently in negotiations with the Uzbekistan government on the detailed requirements of the project and plan to proceed with the implementation of the next phase of the project.

The negotiations would also include setting up a joint-venture company, Petronas said in a statement yesterday.

It said the partnership would further enhance its presence in Uzbekistan's oil and gas sector, as Petronas was already involved in some upstream ventures in the central Asian nation.

Among the projects are development and production of Urga, Kuanish and Ackhalak group of oil fields via the Urga production-sharing agreement and exploration of oil blocks in the Uzbekistan part of the Aral Sea and Surkhansi and Baisun Investment Blocks.

Petronas also said it was currently undertaking a joint study with UNG, Uzbekistan's national oil and gas company, for cooperation in the development of downstream petrochemical projects in Uzbekistan.

The proposed plant could be bigger than Sasol's Qatar facility, the largest such plant in the world, Lean Strauss, a general manager at Johannesburg-based Sasol, said in a speech on March 9, a Bloomberg report said.

Uzbekistan will soon become a net oil importer, boosting the need for local fuel production, Strauss said. The country has 61.6 trillion cu ft of gas reserves, according to BP Plcs Statistical Review of World Energy June 2008.

The Uzbekistan plant could produce as much as 40,000 barrels a day of transport fuels and would need about 3 trillion cubic feet of gas, Strauss said.

The Qatari plant, in which Sasol has a 49% stake, has the capacity to produce 34,000 barrels of oil equivalent per day. — Agencies

Petronas planned to invest more than US$750mil in oil and gas projects in Uzbekistan, Interfax reported in November, citing Uzbek President Islam Karimov. — Agencies

READ MORE - Petronas signs accord with two firms on Uzbek project

Safety Tips

	Tip 1: Where to buy your gas
	Buy your Gas PETRONAS and accessories from AUTHORISED Gas PETRONAS DEALERS as they are your guarantee of quality products and reliable service.
	Tip 2: Do's and Dont's
	Always keep your gas cylinder in an upright position with the valve at the top. Never keep the cylinder in the horizontal position DO keep your doors and windows open for proper ventilation while cooking.  DO NOT place hot appliances on your gas cylinder. DO keep curtains away from your stove or burner.  NEVER leave your cooking unattended. If you are not cooking for a length of time, turn off the gas supply at the regulator The correct way to light a non-automatic stove or oven is: First, light a match Then, put the flame to the burner Lastly, turn on the stove's knob or valve
	Tip 3: Gas Tank Positioning
	Position your gas cooker higher than the gas cylinder. Keep a distance of 1 to 1.5 meters between your gas cylinder and any open flame or heat source, such as electrical appliances unless your gas cylinder is stored in a well-ventilated gas compartment designed for the storage. The correct way to light a non-automatic stove or oven is: First, light a match Then, put the flame to the burner Lastly, turn on the stove's knob or valve
	Tip 4: Detecting a Gas Leak
	Gas odour is the most common and effective indication of a gas leak. Mercaptan is added to LPG as an odourant as its peculiar odour will alert you of a leak. Some insects like the smell of the odourant and will swarm around the area of a gas leak. Thus keep a look out for heavy insect activities near your gas cylinder/joints. Sound is also a good indicator when there is a gas leak. Listen for a hissing sound. Applying a mild soap solution to the valve/regulator joint and hose can also detect a gas leak as soap bubbles will form at the site of the leak
	Tip 5: Preventive Steps
	Check regulator, hose and clips periodically and replace them as soon as they are worn out. It is recommended to replace hoses and clips every two years and regulators every five years. When changing your gas cylinder, ensure the following: There is no naked flame nearby The gas stove is switched off and the valve is closed The gas cylinder is handled carefully. DO NOT drop or drag the cylinder
	Tip 6: How to Install a Regulator
	Before installing the regulator, ensure that the rubber seal in the cylinder valve is in place. DO NOT use cylinders without rubber seals Place the regulator onto the valve with its control level (red line) pointing downwards Turn the level clockwise to the 9 o'clock position. This will lock the regulator to the valve To switch on the gas, turn the lever further clockwise to the 12 o'clock position To switch off the gas, turn the lever anti-clockwise back to the 9 o'clock position To disconnect the regulator from the valve, turn the lever anti-clockwise to the 6 o'clock position and remove the regulator
	Tip 7: What to Do If There Is a Gas Leak?
	Turn off your regulator and gas stove Open ALL doors and windows DO NOT turn on/off any electrical appliances or switches Notify your gas dealer immediately
	Tip 8: What to Do If There Is a Gas Fire?
	Switch off the gas supply immediately DO NOT panic. Raise the alarm and get everyone out of the premises Fight the fire if you can, but DO NOT take undue risks Close the door to contain the fire
	Tip 9: What to Do If the Flame Goes Off While Cooking?
	Switch off the gas stove Ventilate the room to disperse the gas Reignite the stove ONLY when there is no smell of gas
	Tip 10: A Safety Checklist for Your Home:
	Are your curtains away from your stove? Is the supply hose in good condition and tightly fitted? Is the rubber seal in the cylinder valve present? Do you know how to turn off the regulator that controls the gas supply? Do you know how to check all gas connections for leakage? Is your cylinder at least 1 to 1.5 meters from any open flame or other heat sources? Is the cylinder in a properly ventilated area? Do you have a fire extinguisher in your home?

READ MORE - Safety Tips