5 May 2003

Oil giant says no to bribes in Papua

4:18 pm on 5 May 2003

The oil giant, BP, says it plans to use a community based approach to ensure security at the Tangguh liquid natural gas project in the Indonesian province of Papua.

The company has just announced the winners of a tender to build the one point four billion US dollar natural gas liquification plant.

Another multi-national working in Papua, PT Freeport Indonesia, has admitted paying five point six million US dollars to the Indonesian military for the protection of its Grasberg mine.

But BP says it will not pay bribes or pay the military or the police to carry out their duties.

Instead the company is backing a community based policy, which involves everyone from local communities to regional and national security forces.

BP has defended its decision saying paying for army security has been part of the problem rather than part of the solution.

A company spokesman says if BP is subject to repeated extortion attempts that cannot be solved through official channels, then it could decide to shut the project down.