Oil thieves cost Pertamina $37 million
Indonesia’s state oil company Pertamina has lost more than $37 million since 2010 due to oil thieves in South Sumatra, according to local reports.
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During a meeting with the House of Representatives' Commission VII overseeing energy, Pertamina president director Karen Agustiawan revealed the amount of oil stolen from the Tempino-Plaju oil pipeline had increased over the years.
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Pertamina recorded 267,510 barrels oil being stolen this year, a significant increase on the 94,529 barrels recorded as being stolen last year and 8120 barrels in 2010, according to the Jakarta Post.
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The newspaper quoted Karen as saying the local people in Simpang Bayan and Sungai Lilin villages in the Musi Banyasin regency distilled the stolen oil into gasoline, diesl fuel and kerosene and then sell it on to dealers who in turn then distribute the fuels to neighbouring regions.
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As well as the Musi Banyuasin regency, Karen said Pertamina had discovered that thefts were also occurring in Banyasin, Palembang in South Sumatra and Jambi, according to the Post.
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The National Police’s chief of detectives, commissioner general Sutarman, was also quoted by the paper as saying during the meeting that the number of people stealing from the Tempinio-Plaju pipeline was estimated at about 3350 people.
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Five people were killed and about 20 injured earlier this month in an explosion and fire on one of Pertamina's pipelines in South Sumatra after locals attempted to siphon crude.