BP SCOFFS AT BRIBES TO PROTECT PAPUA OIL OPERATIONS

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WELLINGTON, New Zealand (RNZI, May 5) – Oil giant British
Petroleum 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 recently announced the winners of a tender to build
the US$1.4 billion natural gas liquification plant.

Another multi-national company working in Papua, PT Freeport
Indonesia, has admitted paying US$5.6 million to the Indonesian military for the
protection of its Grasberg mine.

But BP says it will not pay bribes to have local authorities
carry out their security duties.

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

BP 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.

May 6, 2003

Radio New Zealand International:
http://www.rnzi.com/

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